Bitcoin Bullish, But LINK Price Still Under Pressure

Although Bitcoin is up nearly 14% over the past week, the market has remained relatively calm for the most part. The upward move in the market looks generally more stable and is most likely unsurprisingly. LINK, the altcoin ranked 17th by market capitalization, also saw a rather stagnant price movement.

Even if the long-term prospects for LINK appear attractive, the market is not yet confident enough for this. So where can LINK go from current prices?

Classic case of disappointment and difficulty

In the last quarter of 2020, LINK was among the top 5 coins. However, with the DeFi boom, many altcoins soared, but LINK’s profits were negligible. Now that LINK has slipped more than 10 places in terms of importance and trading volume and is in 17th place, the asset seems no longer to be the focus of investors.

The source: TradingView

LINK’s market appears to be stagnating in inflows as the Relative Strength Index (RSI) on the daily chart has held a sideways trend for almost a week. This kind of constant rate is a sign of a lack of capital and disorder in the LINK price action. It appears that LINK is in a precarious position that is viewed as a classic case of frustration and difficulty for traders.

StillPrice increase potential

LINK is at its lowest point on the weekly chart, but it’s worth noting that not only is downside risk limited, but the upside potential of the altcoin looks good too. Analyst Nelson Paul added that betting on LINK could be a good strategy in the coming months as it is “most likely aimed at three-digit price targets.”

In terms of development in particular, LINK plays an important role in the DeFi area as well as in NFT thanks to its oracle, in addition to the announcement of partnerships with many other blockchain projects. Chainlink’s Oracle provides real-time data for smart contracts that simplify NFT transactions.

Recently, fintech firm Spartan Hill announced that it was integrating the Chainlink price feed to form the foundation of a new decentralized Colombian peso stablecoin called the Daily (DLY). While news focused on the development side bodes ill for the LINK price, the indicators paint a bullish picture.

Is now a good entry point?

In particular, LINKs NVT reached ATH at the time of writing and was last released in July 2020. This means that the network value will exceed the transmitted value, which is usually the case when the network is growing rapidly and investors value it as a good return investment. On the other hand, the number of active addresses is on the verge of an all-time low – a cause for concern.

The source: Glass knot

However, a decline in the Herfindahl index suggests that resources are being distributed more evenly across addresses, which is a good sign for the network. In addition, the MVRV (7 days) has bottomed out and signaled a reversal.

LINK’s short-term ROI is -0.89% but it’s not bad, while the 3-month and 1-year ROI are + 47.91% and + 181.69%, respectively. With the LINK price stagnating but still offering upside potential, levels below $ 28 are a good entry point into this market.

You can see the price LINK here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to AMBCrypto

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