[Unlocking Chainlink’s Potential: Is $17 the Next Target for LINK Price? 】
The price of Chainlink (LINK) rose to $16.21 on June 12. However, this uptrend was short-lived and the price subsequently fluctuated and eventually retreated, forming a bearish breakout. Even so, interest in LINK remains high, with trading volume exceeding $367 million in the past 24 hours.
Technical analysis indicators such as Network Value to Transaction Ratio (NVT) and Market Value to Realized Value Ratio (MVRV) suggest that Chainlink may be undervalued, providing a good risk-to-reward ratio for value investors. The NVT ratio is the ratio of the total market capitalization of trading volume within the network. LINK has an NVT ratio of 93.04, which means transaction volume exceeds market capitalization growth, indicating that the network is undervalued and capable of handling large volumes of transactions.
The MVRV ratio compares the market value and realized value of a cryptocurrency. Chainlink’s 30-day MVRV ratio is -9.02%, this negative number suggests that selling at current prices would result in losses for most LINK investors, indicating a possible accumulation zone.
Historical evidence supports the idea that LINK price could rise. For example, between May 15 and May 28, LINK price increased from $12.96 to $18.77, while the MVRV ratio increased from -6.45%. Another significant growth occurred in April, when the MVRV ratio was -21.37% and the LINK price increased from $13.08 to $15.62.
Given these past trends and LINK’s current indicators, a price rebound seems inevitable. If this trend continues, LINK could reach $17.70 in a week or two, and could even rise above $18.57 in a bull market.
Despite these positive expectations, traders should proceed with caution. The liquidation heat map shows an area of magnetic liquidity near $15.04. If LINK’s uptrend is rejected, the price could fall into this range, resulting in huge losses for the bulls.
To limit potential losses, traders should set a stop loss target higher than the likely liquidation price. Monitoring market dynamics and tracking key variables will be critical in managing LINK's price volatility in the coming days.
