Markets
How can Chainlink (LINK) price benefit from stagnation?
Chainlink (LINK) price has largely relied on broader market signals to indicate a recovery, and it appears to be working.
The low participation of the network transmits optimism and confidence in a recovery, which could lead to considerable profits.
Chainlink Investors Back Out, But For Good
Chainlink price is seeing a green candle on the daily chart, and this is favored by the resilience observed in the actions of investors. Signs of the same are visible in the Mean Coin Age.
Average coin age refers to the average age of all coins in circulation for a particular cryptocurrency. It helps assess investors’ holding behavior and potential selling pressure. The increase seen on the metric is a sign of HODLing and resilience among investors.
Chainlink Coin Average Age. Source: Holiness
While a lack of network participation is generally a bearish signal, it is currently conveying the same optimistic sentiment.
If this holds, the altcoin could continue its rise, which in turn would translate into considerable profits for investors. According to the Global In/Out of the Money (GIOM) indicator, around 182 million LINK worth over $2.6 billion are on the verge of profits.
This supply was purchased between $13.86 and $15.57. Considering that the price of the LINK would only be needs to increase by another 6% to reach $15.60, it seems possible that this offer could soon become profitable.
To know more: How to Buy Chainlink (LINK) and Everything You Need to Know
As a result, the wait will prevent investors from selling and the lack of bearish activity on the network will continue to push the price higher.
LINK Price Prediction: Growth Ahead
The LINK price is currently trying to flip the $14.45 resistance into support, trading at $14.63. A successful test of this level as support would result in a bounce towards the $15.63 resistance.
As the above mentioned offer becomes profitable, further upside could push the price to breach this resistance.
To know more: Chainlink (LINK) Price Prediction 2024/2025/2030
However, a drawdown is possible if the primary attempt to flip $14.54 into support fails. The price of LINK could drop to $13.76, which will invalidate the bullish thesis, sending the altcoin down to $12.93.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.