Chainlink (LINK) Price Analysis: Key Support Levels Unveiled by On-Chain Data
Chainlink (LINK) Price Analysis: Key Support Levels Unveiled by On-Chain Data
Chainlink (LINK) experienced a significant price drop in the last 24 hours, mirroring the broader crypto market’s negative reaction to recent global economic news. Over the past two months, LINK has seen a considerable downturn, shedding over 40% of its value. However, a deeper dive into on-chain data reveals intriguing insights into potential support levels.
Leading blockchain analytics firm, Glassnode, has identified two crucial price clusters using Cost Basis Distribution (CBD) analysis. CBD reveals the acquisition prices of LINK tokens, helping pinpoint potential support and resistance zones. These clusters, according to Glassnode, represent significant investor accumulation and could play a vital role in LINK’s price trajectory.
Glassnode’s CBD Analysis: Two Key Price Clusters
Glassnode’s analysis highlights two key price levels: $16 and $14.6. Both zones show substantial accumulation activity, predominantly from long-term investors active since August-October 2024.
$16 Price Level: Investors at this level have demonstrated consistent accumulation during price dips. This strategic buying was evident during the December price drop from $29 to $19, a February correction to around $18, and most recently, as prices touched a low of $12.70 on March 11. This persistent accumulation suggests strong long-term conviction and a reluctance to sell.
$14.6 Price Level: While less frequent than at $16, accumulation at $14.6 has been notable during key price moments. Investors increased holdings when LINK traded around $17 and $28 in December, at $25 in January, and again on March 15 following a price surge from $12. This pattern suggests patient investors confident in LINK’s future.
What’s Next for Chainlink (LINK)?
Currently trading just below the $14.6 cluster, LINK sits at a crucial juncture. The proximity to this accumulation zone indicates significant potential for support. Glassnode’s data suggests that holders at $14.6 are not short-term traders, increasing the likelihood of further accumulation. If this occurs, a rebound towards $14.6 and subsequently $16 could materialize, establishing these levels as key support areas in a potential market recovery.
Disclaimer: This analysis is based on publicly available on-chain data and should not be considered financial advice. Investing in cryptocurrencies carries significant risk.