Amid the ‘Uptober’ trend, Chainlink emerged as a solid altcoin in the spotlight. In recent weeks, LINK’s price has made attempts to cross the $12 mark. Nevertheless, increasing selling pressure from bears poses a challenge to this increase. However, the bulls found hope thanks to a significant shift in the numbers: the NVT signal. The drop in the NVT signal indicates that the transaction volume is approaching LINK’s market capitalization, indicating bullish network activity.
Chainlink shows room for a new wave
Chainlink has always remained a top choice among whale investors due to its volatility that continues to attract buyers. Recent data from IntoTheBlock shows a rise in large transactions, reaching a whopping $1.2 billion in value in a week. This increase in the number of large transactions shows the increased interest of whales, which drives the price of the altcoin.
In October, the NVT (Network Value to Transaction) ratio peaked at 160, indicating the network was overvalued. However, over the past week this ratio has dropped significantly and has now stabilized at around 28.
This suggests that transaction volume has increased more strongly, providing stronger support for the value of the network. Consequently, there is a greater chance of a price increase to maintain the value of the network, leading to increased purchasing demand. In addition, the MVRV ratio has increased sharply, from 1.27 to 1.38.
With the MVRV ratio far below market highs and the red zone, there is a potential boost to buyer confidence, suggesting further price increases in the coming days. The market capitalization represents the total dollar value of the circulating supply of cryptocurrency, based on average daily exchange rates. Realized value estimates the total spent on all coins by tracking their market value during on-chain transactions. High MVRV indicates a potential overvaluation, while low values indicate a potential undervaluation of Chainlink.
What’s next for the LINK Prize?
Chainlink price recently tried to fall below the moving averages, but the bears failed to take advantage of this advantage. This suggests that the selling pressure was converted into purchases at a near lower price level. At the time of writing, LINK price is trading at $11.2, down over 2.1% from yesterday’s price.
The 20-day EMA at $11.2 has stabilized and the RSI is hovering above the midpoint, indicating an upside for buyers. If the price manages to rise above the moving averages, the bulls may make an attempt to push the price past the $12 mark. If this is achieved, the price could move towards a breakout trend above $19.
On the other hand, a downward reversal in the moving averages would indicate a possible comeback of bearish sentiment. If it falls below the $9 mark, selling pressure may increase in the market.