Chainlink (LINK) has had a rough February, dropping 25% after failing to break past the $26 resistance in late January. Now, the altcoin is at a crucial point, facing a key resistance level at $19. Without strong investor support, LINK could struggle to regain momentum.
Investor Activity Hits a Low
A major concern for LINK is the drop in network activity. The number of active addresses has fallen to just 3,400, the lowest in two months. This decline signals reduced investor interest, which could weaken bullish momentum. Fewer users engaging with the network means less demand, making it harder for LINK to recover.
When investor engagement drops, it often leads to price stagnation or even further declines. Without renewed interest, LINK could continue its downward trend, struggling to attract new buyers.
Signs of a Potential Rebound
Despite the challenges, some indicators suggest LINK could recover. The Market Value to Realized Value (MVRV) ratio sits at -15%, meaning recent buyers are at an average 15% loss. Historically, when the MVRV falls between -8% and -19%, it signals an “opportunity zone” where long-term holders start accumulating more tokens.
If investors take advantage of this dip, increased buying pressure could help LINK regain momentum. A shift in sentiment toward accumulation would be a key factor in determining whether LINK can break through its current resistance.
$19 Resistance: Make or Break
At $18.84, LINK is just below the critical $19.23 resistance level. This price point has acted as a strong barrier in recent days. If LINK breaks past this level and turns it into support, a rally toward $22.03 could be on the horizon.
However, if LINK fails to break resistance, it risks further declines. A rejection at $19.23 could push the price down toward the next support at $17.31. This would extend the bearish trend, making a recovery even more difficult.
The Road Ahead
LINK’s next move depends on investor sentiment and market conditions. The cryptocurrency needs strong buying interest to push past resistance and regain lost ground. The MVRV ratio suggests accumulation could happen, but uncertainty still looms.
If confidence in LINK remains low, the altcoin could continue its downward trajectory. The next few days will be critical in determining whether LINK can break out or if it will face further struggles. Investors should watch key levels closely, as they will shape the future of Chainlink’s price action.
