- Whales have accumulated 376 million $LINK at the $6.30 level, forming a strong support zone.
- $15.22 has emerged as a key resistance level, with potential selling pressure from holders at a loss.
- Analyst Ali suggests Chainlink’s next big move will depend on breaking key levels with strong trading volume.
According to a chart shared by popular crypto analyst on twitter Ali (@ali-charts), there has been a significant purchase of Chainlink’s native token ($LINK) at the $6.30 price range. Hence, he believes that this price region is a strong support level for $LINK.
The analyst revealed that $LINK buyers bought 376 million of the token, a proof of the conviction from large holders, known as whales. As shown by the green clusters, the chart showed that lots of buyers piled up at this price point.
Hence, majority of wallets that purchased the token at this price are holding it at a profit. With so many buyers at this point, it is unlikely that $LINK’s price will drop below this level.
Source: X @ali_charts
Is this the Start of a Rally?
Also, the massive purchases at this point could be a signal that Chainlink is about to start a strong rally. Usually, purchases by deep-pocketed investors lead to price jumps as these players invest for the long term.
Hence, Ali believes that the $6.30 price could become the point at which $LINK’s price start experiencing a substantial upward movement. Meanwhile, the analyst also stated that the $15.22 price is a key resistance level for investors and traders to monitor.
At such levels, selling pressure are usually greater than buying pressure, leading to a pause or reversal in the coin price’s upward movement. Using the chart, Ali explained that the red clusters which corresponds with the $15.22 price represents a price point where addresses that purchased at this price are currently holding in losses.
Hence, if the coin’s price reaches this level again, many of them may choose to sell to recoup their investments, even though it would be without any profit.
According to the analyst, this could add to the selling pressure at this price level.
Chainlink’s Support Vs Resistance Zone
Ali also explained that Chainlink‘s price movement in the near to medium term will be determined by the interplay between the support price point of $6.30 and the resistance price point of $15.22. Should $LINK break above the $15.22 resistance price level following strong trading volume, it could start a stronger rally.
In contrast, it fails to break above this price, it could reverse back towards the established support levels. Traders seeking to make any position (buy or sell) would need to pay attention to broader market sentiment and trading volume between these important support and resistance levels.