- Analyst Jack predicts LINK could reach $22 if it maintains above $6 and exits its falling wedge pattern.
- LINK’s Market Value to Realized Value (MVRV) Ratio turns positive, indicating a potential market value recovery.
Chainlink (LINK), recorded a 4.24% increase in its price over the past 24 hours, reaching $10.23. This marks a recovery from its recent low of $9.2, although it remains below the August peak of $12.6.
ETHNews analyst points out two critical conditions for LINK’s potential rise to $22. First, LINK needs to maintain its price above the $6 support level to prevent further declines. Second, it must break out from its current falling wedge pattern—a chart formation indicating potential reversals in price trends.
Observations from past by ETHNews, performances support the possibility of significant price increases following such breakouts. For example, LINK previously escalated from $8.0 to $12.6 after a breakout.
Additionally, the Market Value to Realized Value (MVRV) Ratio of LINK, a metric assessing the market value relative to its realized value, recently shifted from negative to positive. This change suggests a potential recovery in its market valuation.
The open interest in LINK, which reflects the total number of outstanding derivative contracts that have not been settled, also increased last week from $36 million to $40 million.
This rise in open interest indicates a growing investor anticipation of further price gains.
Should LINK sustain its price between $10 and $12, and close a daily session above $10.5, it could approach the $15 resistance level.
Achieving this would be an important step towards reaching the $22 mark as forecasted by analyst ETHNews, depending on market conditions and investor sentiment in the coming weeks.
Chainlink (LINK) is currently priced at $10.21 USD, up 0.69% in the last 24 hours, with a day’s range of $9.98 – $10.35. It has a market cap of $6.206 billion and a 24-hour trading volume of $154.35 million.
With support around $10.00 and resistance at $10.35, LINK shows short-term bullish momentum as it trades above its 50-day moving average.
The RSI of 51 suggests it’s nearing overbought territory, but there’s still room for further upward movement.
