Chainlink May Reach New ATH If This Barrier Breaks, Analyst Says
One analyst explains how if LINK can break out of this resistance, the path to a new Chainlink all-time high (ATH) could open up.
Chainlink May Find Major Resistance at $20 Levels
in a new postal On X, analyst Ali Martinez discusses the resistance barriers LINK currently faces on-chain cost basis distribute.
Below is a chart shared by analysts from market intelligence platform IntoTheBlock. It shows the amount of assets Chainlink has acquired at each price range it has visited throughout its history.
As shown in the chart, many Chainlink investors purchased the token in the range of $18.4 to $26.3. More specifically, approximately 100,220 addresses purchased 57.2 million LINK at these price levels.
exist On-chain analysisthe potential of any price range to act as support or resistance is measured by the number of coins purchased within that range. The reason behind this lies in investor psychology.
Generally, holders believe their cost basis is at a special level because retesting it could reverse their profit-loss status. Therefore, they may be more susceptible to panic action when retesting occurs.
Investors who suffered losses before the retest may be concerned that prices will recover soon, so they may be tempted to sell and recover their money.
Likewise, holders who retest the cost base from above may decide to accumulate more funds, believing that level will eventually become profitable again.
Neither effect is material when it comes to retesting minority investors’ cost bases. Still, in cases where many addresses have cost bases within a narrow range, the reaction from a retest could be large enough to cause significant fluctuations in the asset.
The above average Chainlink price range is around $22, which is the cost base for many investors, so it may be difficult for LINK to break through these levels.
However, as Martinez noted, if the cryptocurrency can clear this hurdle, it could easily rise to a new ATH, as there are not many investors currently acquiring levels in the price range beyond the $22 demand area.
In terms of the current price range, there are a few larger ranges nearby, such as $13 to $15 and $11 to $13. These levels could help cushion the downside if the asset undergoes a correction.
link price
Chainlink has witnessed assembly Up nearly 10% in the past 24 hours, the price reached the $18.4 mark.
