Altcoin
This Indicator Proves Chainlink (LINK) Price Has Bottomed Out
The broader digital currency ecosystem is still undergoing massive bearish consolidation, with Chainlink (LINK) price also in the spotlight. At the time of writing, LINK price was changing hands for $15.41, up marginally by 0.17% in the past 24 hours. While volatility remains a significant guide for short-term investors, analytics platform Glassnode has shared insight into LINK’s accumulation distribution over time and its impact on potential price moves.
The Chainlink CBD Analysis: Key Clusters to Note
According to Glassnode’s insight on X, the Cost Basis Distribution (CBD) metric helps identify cost basis clusters, assess market resilience, and track investor positioning. The analytics platform noted that in 2021, wallets with a cost basis of $26 held around 11 million LINK.
Despite price fluctuations, a cluster built around $25 has refused to sell their LINK tokens. In 2023, another set of investors bought about 66 million Chainlink at $7. While these investors raised their cost basis since then, LINK price has shown resilience amid volatility.
As Glassnode pointed out, two clusters remain significant. These include the $16 price range, where investors bought 16 million LINK, and the $14.8 level with 53 million tokens.
“Despite recent price declines, supply at these levels has not been redistributed, indicating that holders at these cost bases remain in position rather than rotating out of the market,” the Glassnode analysis detailed.
Has the Chainlink Price Bottomed Out?
Despite the recovery moves, an earlier Bitcoin price analysis shows that the market is not out of the woods yet. With a recent flash crash, the crypto market recorded another liquidation worth about $430 million before slowing down.
Chainlink was caught in all these uncertain price actions but has showcased resilience amid each fall. In the past 24 hours, the coin traded within a very close range, from a low of $14.72 to a high of $15.69. This price action aligns with Glassnode projections on the token’s support and resistance levels.
The Chainlink price support is pegged at $14.8, and the resistance zone is approximately $16.
Chainlink as a DeFi Enabler
One key reason for the Oracle protocol’s resilience is its role in the Decentralized Finance ecosystem. Chainlink has developed solutions like its Interoperability protocol CCIP to help boost connections among DeFi players.
This innovation complements its primary role as a data resource, helping LINK retain its relevance in the altcoin world. Per an earlier LINK price analysis, the prospect of the coin jumping by 312% was explored, drawing on its growing ecosystem.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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