Chainlink (LINK) price scored an 8% rebound on Wednesday, August 23, despite the prevailing FUD in the altcoin markets. Will investors hold out for a price breakout to avoid booking double-digit losses? 

Against the run of play, Chainlink (LINK) price registered a rare 8% price increase on August 23. On-chain analysis examines if LINK is on the verge of a price breakout or if the bears could reverse the gains in the coming days. 

Recent landmark partnerships and network integration announced by the Chainlink team appear to have inspired confidence among long-term investors. Indicatively, after a noticeable blip last week, LINK Mean Coin Age dipped toward 35.70. But as of August 23, it has reached 40.3, representing a 13% increase. 

The Mean Coin Age data is a vital measure of the overall sentiment among long-term investors. It is derived by estimating the average number of days coins in circulation have spent in their current wallet addresses.  

An uptrend in Mean Coin Age indicates a positive disposition among the long-term investors on the Chainlink network. 

If they continue to HODL, the Chainlink (LINK) could enter a sustained price breakout. 

Ride the crypto wave with confidence. Predict the LINK price here.

Despite the sizeable 8% price gain on August 23, most LINK holders could book double-digit losses if they sell instantly. As depicted in the MVRV chart below, most crypto investors who bought LINK in the last 30-days hold 14% unrealized losses. 

The Market Value to Realized Value (MVRV) ratio analyses holders’ net financial position. The chart above depicts that most holders that acquired LINK in the last 30-days could lose huge if they sell early. 

Hence, LINK traders could hold out until the price breaks above $7 to avoid double-digit percentage losses. 

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Considering the abovementioned on-chain indicators, Chainlink bulls could push the ongoing price breakout toward $10. 

The In/Out of Money Around Price data depicts the purchase price distribution of current investors within the Chainlink ecosystem. It highlights that the LINK price will face initial resistance around $7.

As shown below, the 22,560 holders had bought 273.5 million LINK at the maximum price of $6.80. Chainlink’s price could enter a bearish reversal if they book early profits. 

But if the bulls can push past that resistance, the LINK price could break out toward $10. 

Still, the bears could invalidate the price breakout prediction if the LINK price drops below $6. 

Although 18,570 addresses had bought 240.4 million LINK at the average price of $6.25. The price breakout could continue if the Chainlink holders remain unwilling to sell as predicted.

But if that support level caves, the LINK price could drop to $5. 

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The post Is Chainlink (LINK) on the Verge of a 40% Price Breakout? appeared first on BeInCrypto.

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