Chainlink (LINK) confirmed its downward trend in mid-March but is now looking to recover its losses. The altcoin is expected to receive support from investors who have suffered significant losses in the last two days, potentially aiding in its recovery.
Chainlink Comments
Chainlink‘s price has seen a 30% fall, and LINK investors appear to want to minimize their losses. Their intentions can be associated with sales they initially did not want to make.
This situation could arise from the classification of investors trading on the network according to their profitability. Profitable addresses only indicate 15% of all participants, while 85% are either at a loss or breaking even.
Investors at a loss or breaking even might avoid selling to try to regain their losses.
In the last four days, nearly 100,000 LINK addresses, which represent about 14% of all investors, have lost their profitability, supporting this situation. More than 50% of LINK investors were at a loss as of the time of writing.
Due to this situation, these investors might exert pressure on the market for a price recovery, potentially triggering a movement that could once again raise Chainlink’s price to resistance levels.
The Future of LINK
Chainlink price dropped to $11.45 today, the lowest in 24 hours, which could be seen as proof of the recurring descending triangle. Additionally, the $17 support line remains a significant resistance level.
For LINK’s price to continue rising and eventually break out of the descending triangle, it first needs to surpass these levels. As of writing, LINK is trading just below $14, with key resistance levels at $14.62 and $15.69.
If it can surpass and then convert these levels into support, LINK could see a 17% increase, potentially reaching $17.
On the other hand, if this price movement does not occur, Chainlink’s price increase could reverse from the $16 level, leading to a decline. Moreover, if the downward trend intensifies and the $14 or $13.55 levels are clearly lost, the bullish thesis could become invalid.
