After two weeks of underperformance, Chainlink (LINK) shows symptoms of a possible bullish reversal. Originally in a bearish phase, the altcoin now seems to be developing a pattern traders and experts usually connect with an approaching rebound.
LINK’s price as of the most recent market research trails below three important moving averages: the 200-day moving average, the 144-day exponential moving average, and the 50-day moving average. Usually, such posture points to a bearish trend. Technical indicators, however, point to this trend maybe nearing its end.
Chainlink’s MVRV Ratio Decline
Currently near 39.54, LINK’s Relative Strength Index (RSI) puts it below the neutral threshold of 50 but above the oversold area. This RSI level along with the inverse head-and-shoulders pattern point to LINK trying to bounce back from its most recent decline.
Besides, LINK’s Market Value to Realized Value (MVRV) ratio has dropped to almost -16.84%. Most of the investors that bought LINK in the past two months are losing money according this indicator. Historically, a smaller MVRV ratio can indicate that an asset is underpriced, thereby offering investors who believe in a price recovery a possible buying chance.
Chainlink keeps a consistent presence in the market even though it does not rule social media conversations. A notable rise in its futures trading volume, which has climbed by 85.94%, supports this even more. This increase in trading activity demonstrates traders’ higher curiosity and expectation for a positive reversal.
Based on the Long/ Short ratio of 0.9257, market mood shows traders in almost perfect equilibrium with a little leaning toward optimism. Should this attitude remain, particularly in relation to high long holdings on significant platforms such as Binance (BNB) and OKX, Chainlink’s price might either maintain or even accelerate its path of recovery.
In essence, even if Chainlink has gone through a period of inactivity and bearish patterns, a number of signals suggest a possible positive reversal. Whether LINK can leverage this arrangement and start a protracted movement will depend critically on the next days. Closely observing to see whether this altcoin can surpass its present resistance levels and toward a more strong rebound will be investors and traders.
