Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Chainlink bears maintain control despite signs of undervaluation

Chainlink bears maintain control despite signs of undervaluation

GrafaGrafa2024/09/05 01:25
By:Liezl Gambe

Chainlink (CRYPTO:LINK), the token supporting the decentralised oracle network, is currently under bearish control despite signs of potential undervaluation. 

Data from Santiment shows that LINK’s Market Value to Realized Value (MVRV) ratios for the 30-day and 90-day moving averages are -4.84% and -17.66%, respectively. 

An MVRV ratio below zero generally indicates that an asset is undervalued, suggesting a possible buying opportunity. 

This could imply that LINK's current price is lower than the average price of its tokens in circulation. 

While some traders see this as an opportunity to buy low and sell high later, the prevailing bearish sentiment could complicate this approach. 

Since reaching a monthly high of $12.35 on August 24, LINK has been on a downward trend, forming a descending triangle pattern, a classic bearish indicator. 

As selling pressure increased, LINK’s price fell below the lower trend line of this triangle, which had provided support at $10.25. 

Falling below a support level typically suggests that selling pressure has surpassed buying interest, indicating the possibility of further declines. 

Based on the Moving Average Convergence/Divergence (MACD) indicator, LINK’s bearish trend might continue. 

The MACD line crossed below its signal line on September 1, signaling a shift from bullish to bearish momentum. 

This setup suggests that the current downtrend could intensify, prompting traders to exit long positions and consider short trades. 

If selling pressure builds further, LINK's effort to retest its breakout level could fail, potentially pushing its price down to $8.08, a level it last saw during the broader market slump on August 5. 

On the other hand, if buying interest returns and LINK manages to retest its breakout level successfully, it could break above support and target a resistance level higher. 

A successful break above resistance could lead to LINK trading around $13.73. 

The next few days are likely to be critical for LINK. 

Market dynamics will play a significant role in determining whether the token can overcome its bearish trend or continue to face downward pressure.

At the time of reporting, the Chainlink (LINK) price was $10.33.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!