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Chainlink Forms 300 Million LINK Support Level

Fri, 07/29/2022 - 08:30
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Arman Shirinyan
Billions worth of LINK are now going to try to prevent potential plunge below $6.7
Chainlink Forms 300 Million LINK Support Level
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On-chain data for Chainlink suggests that traders formed a significant support for the token at around the price of $6.70. The transaction history suggests that 7,000 addresses are ready to grab over 300 million LINK.

The IOMAP indicator shows the percentage of investors that are making profits around a certain price and the buying or selling volume, which allows us to determine local support and resistance levels.

IntoTheBlock data
Source: IntoTheBlock

At around $6.70, over 7,000 investors and traders placed 300 million LINK worth of orders, with more than $2 billion worth of volume. Whenever such a large volume appears around a certain price level, it usually becomes a support level, as bears need to cover the existing sum of orders to push the price to a lower level.

The next major support level remains at around $6.20, while no major resistance levels are seen ahead, so even insignificant inflows to the cryptocurrency might push it to new local highs.

Chainlink technical analysis

According to the daily chart of the token, LINK is actively trying to enter the reversal rally as the asset successfully broke through the 50-day moving average and is now aiming at the next resistance level of the 200-day moving average ‌at around $11.

Ripple Sold $408 Million Worth of XRP in Q2

Additionally, LINK broke the local trendline resistance level, which is a strong bullish signal that might lead to a short- to midterm rally on Chainlink. Other factors show that the downtrend on the cryptocurrency is slowly fading, and LINK has all the chances to show significant price performance in the foreseeable future.

At press time, Link is changing hands at $7.6 and is showing a 5.5% price increase in the last 24 hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.