- LINK is forming a higher low targeting a breakout above 0.0002733 BTC for a 65% potential gain.
- LINK price closely tracks altcoin market cap, which must recover above $1.5 trillion to fuel a sustained upward rally.
- On-chain MVRV signals and large LINK withdrawals from Binance show increased accumulation by smart money investors this October.
Chainlink (LINK) Growing on-chain activity and altcoin market trends suggest a potential breakout soon. LINK is also approaching a critical resistance level against Bitcoin.
LINK Price and Key Resistance
Looking at LINK’s weekly chart against Bitcoin, the coin has been in a downtrend since 2020. It has been making lower highs and lower lows, showing weaker performance compared to Bitcoin. There is a key resistance level near 0.0002733 BTC.
The RSI indicates there is still room for the price to rise before reaching overbought levels.Therefore LINK could start a new upward trend from its current level of around 0.0001705 BTC.But to confirm a larger trend change, LINK needs to break above the 0.00027–0.00028 BTC range.
LINK Leading the Altcoin Market
Chainlink often leads the way when altcoins start to rally. A trader named Daan Crypto Trades points out that LINK’s price tends to move closely with the total altcoin market cap. Past big rallies in 2020-2021 and late 2023 to early 2024 saw LINK move up along with the whole altcoin market.
Right now, LINK is trading around $19 and has gained over 10% in the past week. But its price still depends a lot on how the whole altcoin market is doing. Recently, when the altcoin market cap dropped, LINK’s price fell too.
On-Chain Signals and Buying Activity
Santiment shared that when LINK’s average returns over 30 days drop below -5%, it’s often a good time to buy. Their 30-day MVRV indicator shows when short-term holders are losing money, which often means smart buyers step in.
This year, each time the MVRV went negative, LINK’s price soon bounced back. The latest dip happened in mid-October when the MVRV fell below -15%. Since then, LINK has gained nearly 10%.
Also, according to Coin Bureau, about 6.25 million LINK ($116.7 million) was moved off Binance after the market dropped on October 11. This suggests investors are moving LINK into safer places, which often means accumulation.
Chainlink is showing some solid signs it could break out soon.
