Token Chainlink oracle, Band Protocol explodes and hits new highs

Chainlink’s market cap has risen almost 74% over the past month, from $ 29.50 to a new all-time high of $ 51.30. Such an impressive rally seems to have started after LINK broke above the symmetrical triangle on March 31.

Based on the height of the triangle, Chainlink is poised to rise 79% towards the outer Fib retracement level 2 at $ 53.50 – measured from the Feb. 20 high of $ 37 to the entry low. February 23 is $ 20.70.

Daily LINK / USDT Schedule | Source: TradingView

Now the target of the symmetrical triangle is almost reached, and Market Value to Realized Value (MVRV) is pointing to the pressure from potential sellers in the future. This basic indicator measures the average profit or loss of all addresses that bought LINK tokens over a specific time frame.

Chainlink’s 30-day MVRV rate currently stands at close to 30%, suggesting that most of the market participants who bought LINK in the past 30 days had an average return of 30% on their initial investment.

Every time the 30-day MVRV is up over 48% in the past three months, a sharp pullback has occurred as most of the tokens in circulation are profitable. The higher the MVRV ratio, the higher the selling pressure.

With that in mind, some caution will be recommended in the coming days. Although LINK’s 30-day MVRV may have plenty of room to go up, the fact that it is currently facing stiff resistance could cause a short-term reversal.

Chainlink MVRV 30 days | Source: Santiment

IntoTheBlock’s Global In / Out of the Money (GIOM) model reveals that Chainlink sits on top of a large demand wall that could hold back downward momentum in the event of a retreat.

Based on this on-chain metric, more than 76,400 addresses have previously purchased more than 64 million LINKs from $ 32.80 to $ 43.70. Holders of this price range can try to do anything to prevent their investments from “losing money”. They can even buy more tokens to allow the price to recover.

IntoTheBlock’s Global In / Out of the Money

With the lack of supply hurdles above, it’s a bit more likely that Chainlink will reject sell signals and continue to climb higher.

Traders must pay attention to a candlestick closing above the recent high of $ 51.30 as it will invalidate the pessimistic outlook and lead to a rally to $ 60 or higher.

Whales are buying BAND

Band Protocol has had a substantial correction after making a new all-time high of $ 23.40 on April 15. Its market value has dropped more than 50%, falling by more than $ 12 in three rounds. day.

Despite the catastrophic decline, it seems that large investors (whales) have capitalized on the uncertainty to buy BAND at discounted prices.

Band Protocol’s supply distribution chart shows that the number of addresses with 1,000 to 100,000 BAND has increased 4.90 percent in the past week. About 16 whales joined the network during that time.

The spike in the number of whales online at first glance seems insignificant. However, when considering these high net worth individuals holding up to $ 2 million in BAND, the increase in buying pressure could translate into millions of dollars.

Source: Santiment

IntoTheBlock’s GIOM model shows that most of the tokens bought by whales recently were bought for an average price of $ 16.90. Here, transaction history shows that 1,300 addresses hold more than 6.30 million BAND.

Therefore, the demand zone of $ 16.90 could be considered a suitable area for adding position in the event of a sell-off.

IntoTheBlock’s Global In / Out of the Money

While Band Protocol’s bearish potential appears capped by $ 16.90 support, technical indicators suggest that it has plenty of room to move up. BAND appears to be making a break up on the handle cup pattern that has been developing in the weekly chart since mid-August 2020.

If buy orders continue to pile up, this oracle token could rise 370% to an external FIb pullback of 1,786 or 2 – measured from a high of $ 20.80 on November 4, 2020 to as low as $ 3.80 on February 13, 2021.

These potential targets are $ 79 and $ 113.50 respectively.

Weekly BAND / USDT chart | Source: TradingView

Such an optimistic target is determined by projecting the cup’s height onto the breakout point.

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