Chainlink’s (LINK) market value has experienced a significant slump over the past two months, with a decline of over 40% amid widespread crypto market instability triggered by the U.S.’s new international tariffs. Amid this downtrend, a fresh analysis from leading analytics firm, Glassnode, underscores two pivotal price points that have influenced investor behavior during this period.
Through the utilization of Cost Basis Distribution (CBD), a criterion that unveils the prices at which investors procured their assets, Glassnode has shed light on potential zones of resistance or support in the LINK market. According to the firm’s data, two key price levels, $16 and $14.6, demonstrate high accumulation activity and feature long-standing investors who have maintained activity since August-October 2024.
In an examination of transactions at the $16 price point, it was noted that investors have strategically repositioned by actively accumulating during downtrends. This trend was evident during the price depreciation from $29 to $19 in December, the correction to around $18 in February, and most recently when the price hit a new low of $12.70 on March 11. Such recurring transactions speak to the presence of high-conviction holders at $16.0 who have strong long-term confidence in LINK and are thereby less prone to selling their holdings.
On the other hand, LINK holders at $14.6 have demonstrated a less active but timely accumulation. These investors have increased their holdings during key phases such as when LINK traded at $17 and $28 in December, at $25 in January, and on March 15 following a significant price gain from $12. These findings indicate that current LINK holders are not swift money allocators but are patient and confident about future price accumulation.
At the time of writing, LINK is trading at $14.0, just below the key cluster level at $14.6. The closeness to this accumulation zone suggests the market is at a crucial crossroads. However, the data from Glassnode indicates that holders at the $14.6 level are not fast money traders and are likely to bolster their position through further accumulation. If this optimistic scenario plays out, LINK could reclaim the $14.6 and $16 levels, which could act as crucial support structures in a potential market rebound.
