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Chainlink (LINK), a decentralized oracle network, appears to be establishing a solid support level, according to recent on-chain data. The data reveals that approximately 68,540 addresses have purchased around 406 million LINK tokens between the price range of $6.3 and $7. This demand wall is indicative of a strong support area that could potentially prevent LINK from experiencing any significant declines.
Since February, LINK has been on a steady upward trajectory, breaking through previous resistance levels. However, the asset encountered a reversal at $7.6, losing around 6% of its value. Despite this minor setback, Chainlink's overall performance and technical outlook remain positive.
One key factor that could contribute to LINK's continued growth is the potential formation of a golden cross in the near future. A golden cross is a bullish technical indicator that occurs when a short-term moving average crosses above a long-term moving average, typically the 50-day and 200-day moving averages. This crossover signals a possible trend reversal from bearish to bullish, attracting more investors and fostering further price appreciation.
The current support level, combined with the possibility of a golden cross, presents a promising outlook for Chainlink. Investors and traders should keep a close eye on these technical indicators and on-chain data, as they may provide valuable insights into the asset's future performance.
At press time, Link is trading at $7.2 with a 0.4% price increase in the last 24 hours. Considering all of the aforementioned factors, LINK might position itself as one of the most dominant assets on the market for now and the foreseeable future.
Denys Serhiichuk
Tomiwabold Olajide
