- Chainlink’s price shows resilience, with strong support at $14.8 and $16, suggesting potential for a rebound despite short-term bearish signals.
- The negative MVRV ratio and oversold RSI indicate a possible price recovery for Chainlink, following historical patterns of strong rallies.
The Chainlink (LINK) price has experienced notable volatility, drawing attention from traders and analysts alike. Despite a bearish trend in the crypto market, LINK has shown resilience, with its price around the $15 mark.
As of the time of writing, Chainlink (LINK) was trading at $15.32, recording an increase of 0.79% over the last 24 hours. The market cap stands at $9.77 billion, with a 24-hour trading volume of $651.33 million, marking a 32.12% increase in activity.
However, adding to this sentiment, data from the Glassnode has shed light on LINK’s accumulation patterns, revealing regions of holdings at specific price levels. Notably, an area around $16, where 16 million LINK were purchased, and another at $14.8, which holds 53 million tokens, remain intact despite recent declines.
These price levels indicate that long-term holders are not selling their positions, a sign of confidence in the asset’s future potential. According to Glassnode, the lack of allocation at these levels suggests a solid base for Chainlink, which could contribute to a price rebound.
Chainlink $LINK has undergone multiple accumulation and distribution phases over the past three years. By analyzing Cost Basis Distribution metric, we can identify key cost basis clusters, assess market resilience, and track investor positioning: https://t.co/CJzzUuU4tp 🧵👇 pic.twitter.com/DusdTbacz4
— glassnode (@glassnode) February 26, 2025
Additionally, according to IntoTheBlock’s On-Chain data, support is observed in the $14.40-$16.93 range, where approximately 157 million LINK tokens were purchased. Traders who bought within this zone are likely to hold onto their positions, which could potentially protect against further price declines.
The resistance level for LINK is seen in the $18.27-$19.88 zone, where 43,000 traders hold 70 million LINK. If LINK’s price breaks through these levels, it could trigger a larger price surge.
Another factor contributing to the growing optimism around LINK’s price is its Market Value to Realized Value (MVRV) ratio. This key indicator recently flipped negative, a pattern that historically has preceded price recoveries.
As per a report from ETHNews, the MVRV ratio is currently at -16.3%, indicating that most LINK traders are at a loss. Historical trends show that when the MVRV ratio drops below -16%, LINK has rebounded strongly, with previous rallies exceeding 300%. This flip to negative territory could signal an upward movement for Chainlink’s price, possibly surpassing the $16 resistance level.
Chainlink’s Role in the DeFi Ecosystem
Beyond technical indicators, Chainlink’s importance in the decentralized finance (DeFi) space is another reason behind its sustained resilience.
As a key enabler for DeFi, Chainlink has developed solutions like its Interoperability Protocol (CCIP), which enhances connections between various DeFi platforms. This utility within the DeFi ecosystem helps maintain demand for LINK, regardless of short-term price volatility.
Technical Indicators Point to Short-Term Challenges
Despite these bullish signals, technical indicators still show a bearish short-term outlook. The Relative Strength Index (RSI) currently stands at 31.23, signaling that LINK is in oversold territory.
The Moving Average Convergence Divergence (MACD) also suggests a continuation of the current downtrend. These indicators point to potential downward pressure in the short term, but with the RSI showing an oversold condition, a price rebound may be in the cards if market conditions improve.