Chainlink (LINK) has been consolidating within a horizontal channel over the past few weeks, with resistance at $10.78 and support at $10.06. Currently, the altcoin is trading close to its support level, hovering around $10.14.
Since August 6, LINK's sideways movement is attributed to balanced buying and selling pressures, as evidenced by its flat Relative Strength Index (RSI) of 40.83.
This consolidation indicates market indecision, with on-chain data showing lower daily transaction volumes in profit compared to losses, signaling potential buying opportunities.
Despite trading near the lower support line, LINK's market value to realized value (MVRV) ratios under zero suggest the asset's current price is undervalued, presenting a buy-the-dip opportunity.
If demand surges and LINK breaks above resistance, the price is projected to climb to $11.64. Conversely, if it dips below support, prices may decline further to $8.17.
