LINK traded nearly 60% high from July’s lowest mark and approximately 27% within August’s first ten days.
While publishing this content, it was approaching a crucial resistance level that could disrupt Chainlink’s recent upside. While writing this content, LINK traded near $9.17, gaining 4.94% within the past 24 hours.
That represented a crucial region since its previously demonstrated resistance around the value area of $9.40. LINK will likely meet resistance in this territory.
The Moving Average Convergence Divergence confirmed a lower momentum at the token’s current value area (compared to June 9 strength). The latter represents the last time the price met a substantial bearish retracement.
What Should You Expect?
The current prediction shows the immediate resistance level will catalyze a retracement. Nonetheless, that doesn’t have to emerge if adequate demand showcases. Nevertheless, on-chain metrics could help forecast the possible outcome.
Active address holding Chainlink surged significantly within the past four days, hitting 2564 addresses on August 9. Nonetheless, the surge tapered out on August 8 and 9. Furthermore, the receiving and sending address difference displayed something fascinating.
Receiving addresses declined to 1,711 from 2,001 on August 8 and 9. Meanwhile, sending addresses remained elevated, surging to 1,690 from 1,364. That signaled increasing selling momentum as LINK’s price approached the resistance line at $9.40.
Moreover, Chainlink’s supply balance distribution indicated that selling strength remained low during this publication. Address holding 1 million – 10 million tokens trimmed their balances within the past 24 hours.
Notably, addresses holding more than 10 million tokens held nearly 55% of Chainlink’s supply. Moreover, this whale category has briefly added its holdings within the past four days.
The outflows in some of Chainlink’s leading addresses indicated a developing selling pressure. It will likely intensify around the resistance mark. Nevertheless, LINK remains near its 2022 lows regardless of its recent upside.
Also, Chainlink investors should watch the broad market tendencies for profitable executions. The crypto market exhibited uptrends during this publication. Bitcoin gained over 6% within the past day to $24,668. It remains crucial to witness upcoming price trends. Stay tuned.