Chainlink (LINK) price may continue to suffer from bears due to lack of activity on the network.
The situation is worsened by general market signals, which, although they have become optimistic, have not yet gained strong momentum.
The chain link was pulled back
Chainlink price may have some difficulty recovering its recent losses. This is because Chainlink’s NVT ratio has reached its highest level in four years and eight months. This signals potential bearish trends for the crypto asset going forward.
This elevated NVT ratio suggests that the network’s value may be overstretched relative to its transaction volume, a condition that often precedes a price correction.
Read more: How to Buy Chainlink (LINK) and Everything You Need to Know
In addition to the NVT ratio, the Chainlink Relative Strength Index (RSI) is also in negative territory. The RSI is a key momentum indicator, and its current position suggests that LINK is experiencing bearish momentum.
While bullish momentum may be building, as indicated by the rising RSI, the altcoin may struggle to find upward momentum until the neutral line turns into support. The lack of buying pressure reflected in the RSI may prevent any significant price recovery without additional positive catalysts.
Given these indicators, Chainlink may need stronger signals or external factors to break out of this bearish phase.
LINK Price Forecast: The Fall Could Be Prolonged
Chainlink’s $10.42 price is far from recouping the gains lost during the recent downturn. With the altcoin’s value at a ten-month low, LINK may need more than prayers to push it back up.
At this point, the most likely outcome seems to be consolidation below $11.00. The chances of a breakout above this level are a bit low and could remain in the range above $9.35.
Read More: Chainlink (LINK) Price Prediction 2024/2025/2030
However, if $11.00 turns into support, the altcoin could mark an uptrend and potentially break $11.99. Breaking this barrier would negate the bearish thesis and allow the recovery to continue.
