Chainlink (LINK) is facing significant bearish pressure as network inactivity continues to impact its price. Despite some bullish signals in the broader market, Chainlink struggles to gain momentum.
Chainlink’s Bearish Indicators
The recent decline in Chainlink’s price might continue due to a troubling Network Value to Transaction (NVT) ratio. The NVT ratio, which has reached its highest level in over four years, suggests that the network’s value is overstretched relative to its transaction volume. This condition often precedes price corrections, signaling potential difficulties ahead for LINK.
Adding to these concerns is Chainlink’s Relative Strength Index (RSI), a key momentum indicator. Currently, the RSI is in negative territory, highlighting ongoing bearish momentum. While there are hints of bullish momentum building, LINK may struggle to break out until the RSI moves above the neutral line, signaling stronger buying pressure.
LINK Price Prediction: Recovery Remains Challenging
At its current price of $10.42, Chainlink is far from recovering its recent losses. With LINK at a ten-month low, the path to recovery seems uncertain. Consolidation below $11.00 appears to be the most likely scenario, with limited chances of a breakout. The altcoin could remain range-bound between $9.35 and $11.00.
However, if LINK manages to flip the $11.00 resistance into support, it might trigger an uptrend, potentially reaching $11.99. Breaking this level could invalidate the bearish outlook and open the door for further recovery.
