Is the future of Chainlink (LINK) in jeopardy due to bearish signaling? Can hodlers turn the tide

The current downtrend in Chainlink's coefficients is showing signs of weakness, providing investors with an opportunity to halt the downward movement.
Conversely, the altcoin is facing a number of bearish developments that could reverse recent gains.

Hodlers show steady support for Chainlink's price

After falling 14% over the past four days, Chainlink's price has settled at $18.56. Despite this, the altcoin continues to trade in a range between $21.69 and $17.56, with the recent test of the lower boundary being a potential support level.
Judging by the data from the blockchain, this period of stabilization is likely, especially as LINK holders show their support for the cryptocurrency. Most people involved in online trading seem to be optimistic investors.
According to the Active Address Return Index, only 7% of investors are currently active. The majority, 57 %, have seen no gains or losses. Interestingly, the remaining 35% of investors did make a profit.

Since most of the addresses involved in the trade do not report losses, they choose not to sell, thus avoiding a significant drop in value.
Investors should also consider the MVRV ratio when determining market trends. This ratio measures the relationship between market value and realized value, providing insight into investors' potential gains or losses. Chainlink's MVRV ratio of -5.2% over the past 30 days indicates that recent investors may have suffered financial losses.
In addition, past data shows that when MVRV falls between -5% and -12%, it typically signals an impending market upturn, which is commonly referred to as a favorable period for asset purchases.
Thus, LINK is at an ideal stage to accumulate funds, which could attract new investors.

Investors are facing doom as the price outlook for LINK remains bleak and the prospect of a "death cross" is not far off

Given the aforementioned factors, there is a possibility that Chainlink's price could experience a rebound, leading to a continuation of the bullish trend. This potential scenario would not only help LINK regain its 50-day exponential moving average (EMA), but also solidify $19 as a key support level.

Note that the altcoin recently experienced a "death cross" on the 4-hour chart. This occurs when the 50-day EMA falls below the 200-day EMA, indicating a potential decline in the value of the asset.
If the bullish bias is overcome, Chainlink's price could fall to $17.56, which would cause the bullish scenario to be abandoned.