Chainlink (LINK) Price Prediction 2023: Will LINK Hit $12 This Year?

Chainlink (LINK) has witnessed a notable 22% price increase over the past 30 days, positioning itself as one of the top-performing cryptocurrencies

Cryptocurrency price movements are influenced by a multitude of factors, and Chainlink (LINK) is no exception. Over the past 30 days, LINK has experienced a remarkable 22% price increase, making it one of the top performers among the top 20 cryptocurrencies by market capitalization.

One aspect that may have contributed to Chainlink's current performance is the behavior of its investors, which can be observed through on-chain metrics. According to data from IntoTheBlock, Chainlink Coin Holding Time has surged by an impressive 677% from late July onwards.

This metric, which measures the average time investors hold onto the tokens, provides insight into their level of confidence in Chainlink for the long term. An increase in holding time suggests that investors are opting to retain their LINK tokens instead of trading them, which could lead to a decrease in supply and potentially contribute to price appreciation.

Moreover, the increase in holding time also points to a shift in investment strategies among Chainlink investors. Generally, long-term token holdings by investors indicate their high expectations for the future value of the asset.

This behavior is crucial in sustaining Chainlink's recent price gains, as a reduction in selling pressure can contribute to a more stable price action.

Another factor that aligns with the bullish outlook for Chainlink is the Market Value to Realized Value (MVRV) ratio. This ratio serves to determine whether an asset is overvalued or undervalued based on its market price in relation to the realized value of the asset.

Currently, Chainlink's 30-day MVRV ratio stands at 13.56%, indicating that the cryptocurrency is in a healthy zone with a reasonable level of unrealized gains.

Historically, Chainlink's price has exhibited a tendency to rise as the MVRV ratio increases. In previous cycles, the ratio has ascended to levels as high as 20% before a price correction.

If this pattern were to continue, it could lead to a potential price increase for LINK, possibly pushing it to breach the $12 mark. However, it's important to note that a high MVRV ratio can also attract profit-taking, which may result in a short-term retracement in price but signifies a high level of market engagement and interest in the asset.

Technical analysis also provides valuable insights into Chainlink's price movements. Crypto analyst Rekt Capital has highlighted key support levels and price projections for the cryptocurrency.

According to Rekt Capital, LINK's price had dropped to around $8.19, which is close to the upper wick of the previous accumulation zone. This level has now been confirmed as a new support level, and it marks the beginning of a new uptrend, as seen in the technical chart below.

Following this test, Chainlink's price has begun to rally and is now trading above a crucial historical demand area, which is depicted by an orange box on the chart. This zone has served as support in the past and is being tested once again.

If Chainlink manages to close above this zone by the end of the week, it will likely indicate that this level is acting as strong support, which could pave the way for further price appreciation.

The possibility of a retracement to this zone is particularly important. If the price approaches this zone and bounces back, it would indicate the strength of the support and could open up the path for LINK to test higher resistance levels.

As highlighted by Rekt Capital, the next major trading zone for Chainlink lies between $13.10 and $16.86, which marks the upper side of the present trading range.

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