Chainlink's (LINK) price is facing potential drawdown as investor optimism fades and minimal network activity is revealed.
The bearish sentiment arises from high NVT (Network Value to Transactions) ratio, indicating overvaluation.
Despite recent price increases and remaining positive sentiment, the optimism is gradually fading among LINK holders since late July.
LINK's price struggled to breach and sustain above key resistance levels.
If LINK's price continues to drop, it may reach the local support floor at $10.79 or even decline to $10.00, negating the mid-August recovery.
However, a rebound from the $10.79 support could push prices above $12.35, indicating potential upside and invalidating the bearish outlook.
