The encryption market began to recover after the last recession, and this helps to increase the price of Chainlink. Also, with the start of inflation in the United States in slowing down, commercial attention continues to rise. However, LINK may soon be corrected because it becomes exaggerated. This is due to a decrease in the decisive data on the chain, which erases the hopes of recovery.
MVRV decreased from Chainlink despite recovery
The price of Chainlink has been in a strong recovery gathering over the past few hours. As a result, it collapsed above the level of $ 14, which led to a large liquidation. The data from Coinglass shows that Chainlink faced $ 1.57 million. From this, the sellers settled more than a million dollars, and the buyers sold for $ 470,000.
The current recovery gathering of ChainLink series may be preparing to stop as the MVRV ratio hovers around 1.1 despite the increase in prices. IntothebLock explains that the MVRV ratio of Chainlink decreased from the peak of 1.42 to 1.13 with the liaison price recovery.
The percentage of MVRV decrease during the price rise indicates that the average price in which the symbols were traded in the last time it does not match the current market price. This may mean that the recent increase in the correlation price is more speculation than the real gains in the value of Altcoin. This makes the Chainlink series exaggerated as it moves above the resistance level.
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As a result, there is a possibility that the correlation price will see correction near the direct Fibonacci channel. Nevertheless, Chainlink is still higher than Alkin due to strong development and strong technical support.
Great accumulation by big investors, with 3 million purchases in the past five days, as well as high trading volumes, appear strong confidence for investors. In addition, increasing the open interest by 35 % about $ 580 million shows the increasing confidence among traders.
What is the next link?
Chainlink offers a strong upward trend, approaching the resistance level of $ 15 amid the great purchase interest. This demand helped to remain higher than the Key Fibonacci support levels, at now at $ 14.4 after an increase of 11.52 % over the past 24 hours.
LINK/USDT faces some resistance at about $ 14.7, a point in which hoops begin to increase. However, as the RSI is approaching the peak threshold at 78, Chainlink may be directed towards a correction. It is ready to test the level of $ 14.7 again, and the fracture above this can put it on a road about $ 17.6.
On the other hand, if the pressure pressure is intensified on these resistance levels, it may deny the recent gains. If the link fails to penetrate between $ 14.7 to $ 15, its price may decrease to about $ 11.7. Less decrease than this level can lead to a significant correction.
With the long/short ratio currently at 2.17, indicating an increase in purchase, there is a risk of fake eruption. Currently, 68.5 % of merchants expect another upward movement at LINK price.
