The 20% increase in Chainlink's (LINK) price indicates that it was more optimistic about the Bitcoin halving event than the cryptocurrency itself.
Investors in Chainlink May Decide to Sell
Investors in LINK regained their profits as Chainlink's price increased, which may have been a major motivator for them to sell. The entire LINK supply in profit decreased from 84% to 70% as a result of the most recent correction.
This 14% supply equates to approximately 82.18 million LINK, or roughly $1.3 billion in value. This entire supply has now recovered to its pre-decline level once more. The profitable supply increased by 13% during the previous two days, reaching 84% at the time of writing.
Although this is a positive development, investors may decide to sell as a result of wanting to protect their gains and avoid further losses due to a fall. As a result, Chainlink's price would drop.
This feeling is supported by the Market Value to Realized Value (MVRV) ratio. MVRV ratio monitors profits and losses for investors. Sales may be prompted by Chainlink's 7-day MVRV of 11%, which indicates profitability. BTC has historically corrected at MVRV levels between 8% and 15%, designating it as a risk zone.
LINK Price Forecast: Overcoming the Obstacle
Over the weekend, there was a 20% increase in Chainlink's price, bringing the digital asset to $15.8. There is a barrier directly beneath this spot that LINK has tried to cross several times but has not been successful.
Although the altcoin closes above it, it reverts from the resistance at $15.6 to test the support levels of $14.6 and $13.4. Should the former break, the possible decline will lead to a test of the latter support level if holders of LINK decide to sell at this time.
But there is a chance for recovery if the $15.6 resistance level is successfully overcome and turns into support.
April 2024, Cryptoniteuae