Chainlink Has Massive Resistance Ahead, Will The Rally End Soon?
07 Novembre 2023 - 8:00PM
NEWSBTC
On-chain data shows there is major resistance ahead for Chainlink,
a sign that could be troubling for the rally’s sustainability. Only
55% Of Chainlink Investors Are In Profit So Far As explained by an
analyst in a post on X, Chainlink is still behind Bitcoin in terms
of investor profitability despite the LINK price outperforming BTC
in the year so far. The below chart shows what the LINK address
concentration looks like on the different price ranges that the
asset has previously visited: The different on-chain resistance and
support levels of the asset | Source: @hmalviya9 on X Here, the
size of the dot represents the number of investors or addresses who
purchased their coins inside the particular price range. It would
appear that the ranges below $10 are host to the cost basis of a
hefty number of holders. Related Reading: XRP Enjoys 11% Rally As
Sharks & Whales Hit 2023 High Holdings Since the LINK price is
above these levels right now, these investors would naturally be in
a state of profit. These addresses only make for about 55% of the
network total, however, implying that a significant number of them
are still sitting at a loss. From the chart, it’s visible that the
$16 to $27 range in particular has a considerable density of
investors. In on-chain analysis, major support and resistance
levels are defined on the basis of the number of investors that are
at a particular range. This is because of the fact that whenever
the spot price interacts with the cost basis of an investor, they
become more likely to show a move. When the price retests the cost
basis from above, the holder may decide to buy more. The reason
behind this is that they might tend to believe that the level,
which had been profitable for them earlier, might produce gains in
the future again, so it would appear like an ideal point of
accumulation for them. On the other hand, the red holders might see
the break-even point as a decent exit point, as they might fear
that the cryptocurrency would go back down in the near future, so
going out here at least means they can avoid taking any losses.
Such buying or selling from just a few investors when the price
retests their common cost basis doesn’t produce any effects on the
macro scale, but if a large number of investors bought at the same
level, the reaction might be more pronounced. Related Reading:
Bitcoin Has Just Cleared A Level That Historically Lead To Rallies
Of 99%+ Thus, the Chainlink levels ahead until the $27 mark might
prove to be a source of some heavy resistance, making the rally
hard to sustain through them. The analyst notes, however, “once
LINK breaks the $27 mark, the ensuing rally is expected to be
substantial. Alongside this, the wallet profitability ratio is
projected to surpass 80%.” As mentioned before, Bitcoin’s investor
profitability distribution is looking much better so far, as the
below chart from IntoTheBlock shows: Looks like the current price
levels have a substantial amount of investors | Source:
IntoTheBlock on X Bitcoin is currently battling against the
resistance offered by the current investor-packed $34,100 to
$35,100 range. Once BTC is through these levels, however, the road
towards $40,000 might prove to be relatively easy. LINK Price
Following its 12% rally in the past week, Chainlink is now sitting
just below the $12.9 mark. LINK has exploded more than 67% in the
past month | Source: LINKUSD on TradingView Featured image from
Shutterstock.com, charts from TradingView.com, IntoTheBlock.com
ChainLink Token (COIN:LINKUSD)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
ChainLink Token (COIN:LINKUSD)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024