This Indicator Proves Chainlink (LINK) Price Has Bottomed Out

by

LINK‘s Predicament: A Tale of Two Clusters đź’Ž

This Indicator Proves Chainlink (LINK) Price Has Bottomed Out

The grand ballroom of digital currencies is currently undergoing a rather dour waltz, with Chainlink (LINK) finding itself under the spotlight. Alas, at this very moment, LINK is exchanging hands for a mere $15.41, a negligible increase of 0.17% in the last 24 hours. While volatility remains a siren song for those with short-term aspirations, the esteemed analytics platform Glassnode has unveiled a fascinating glimpse into LINK’s accumulation distribution over time and its potential impact on the price’s trajectory.

The Chainlink CBD Analysis: Key Clusters to Note

According to Glassnode’s musings on X, the Cost Basis Distribution (CBD) metric acts as a mirror, reflecting cost basis clusters, assessing the market’s fortitude, and charting the course of investor positioning. The platform observed that in the halcyon days of 2021, wallets clutching LINK at a cost basis of $26 held a considerable 11 million tokens.

Despite the tempestuous tides of price fluctuations, a cluster of investors who acquired their LINK at $25 has steadfastly refused to relinquish their holdings. In the year 2023, another cohort of investors embarked on a buying spree, acquiring approximately 66 million Chainlink at the bargain price of $7. While these investors may have since raised their cost basis, LINK has demonstrated remarkable resilience amidst the volatility.

As Glassnode astutely pointed out, two clusters hold particular significance. These include the $16 price range, where investors hold 16 million LINK, and the $14.8 level with a hefty 53 million tokens. 

“Despite recent price declines, supply at these levels has not been redistributed, indicating that holders at these cost bases remain resolute, rather than succumbing to the siren call of rotating out of the market,” Glassnode’s analysis proclaimed.

Has the Chainlink Price Bottomed Out? 🤔

Even amidst these tentative recovery movements, a recent Bitcoin price analysis suggests that the market remains teetering on the precipice of uncertainty. With a recent flash crash, the crypto market experienced another wave of liquidations worth approximately $430 million before finally succumbing to exhaustion.

Chainlink found itself ensnared in this maelstrom of uncertain price actions, yet has emerged as a beacon of resilience amidst each decline. In the past 24 hours, the coin traded within a narrow band, ranging from a low of $14.72 to a high of $15.69. This price action aligns impeccably with Glassnode’s projections on the token’s support and resistance levels.

The Chainlink price support is firmly anchored at $14.8, and the resistance zone hovers around $16.

Chainlink as a DeFi Enabler

One key reason for the Oracle protocol’s steadfast resilience stems from its vital role within the Decentralized Finance (DeFi) ecosystem. Chainlink has orchestrated solutions like its Interoperability protocol CCIP to foster connections among the DeFi players.

This innovative endeavor complements its primary function as a data resource, ensuring that LINK retains its relevance in the ever

Read More

2025-02-27 02:00