Chainlink Market Analysis

After multiple Change of Character (CHoCH) and Break of Structure (BOS) points, Chainlink is at a key $12 support zone as of press time.

A strong reaction here could trigger a move back toward the $16-$18 range, while a break could see LINK retest $10 or lower.

The price of Chainlink (LINK) was trading around $12, reflecting an 11% drop in the past 24 hours.

The 4-hour price action indicated multiple CHoCH and BOS, signaling changes in market structure and momentum. Chainlink has been in a downtrend from a high of around $20.00, with CHoCH and BOS levels identified around $18.00, $16.00, and $14.00, confirming the weakening bullish momentum.

Reaching Equal Highs (EQH) around $16, followed by a BOS below $14.03, has solidified the bearish outlook.

If the $12.00 support holds, a strong bullish response could push LINK back toward the $16.00-$18.00 area, consistent with the resistance zone. Conversely, a breakdown below $12.00 might lead to a retest of $10.00 or lower, possibly reaching $8.00-$9.00 if bearish momentum continues.

The $14 level is crucial; a close above $15 would invalidate the bearish scenario, while dropping below $12.00 would confirm further downside risk. Volume and candlestick patterns near $12.00 will be key for confirmation.

Determining LINK’s Key Levels from Profitability Charts

Further analysis of LINK’s “In/Out of the Money Around Price” reveals that $12.00 is currently the most significant support level.

The “In the Money” addresses represent 43.78%, accounting for approximately 674.2 million LINK in volume, showcasing strong support at this level. Both the “Out of the Money” addresses account for 55.19%, about 605.8 million LINK, predicting potential resistance levels above the current pricing, where 1.13 million LINK are at the money.

The 43.78% buying zone below $12.00 supports a potential bottom if LINK drops further, supported by strong demand.

If LINK holds at this level, it could push towards the $14.00 resistance area, where selling pressure is high.

However, breaking below $12.00, with only 0.98% at break-even, could lead to a decline to $10.00, which has little support.

The 43.78% to 55.19% difference is a threshold; sustained buying over $12 can signal a bull run, whereas falling below may induce greater selling.

Moreover, the “Active Addresses by Profitability” data reveals that most holders bought LINK around $4.00, marking it as a crucial support level to observe, particularly for early adopters. Additionally, 54.46% purchased for less than $12, with only 5.12% around the money.

The $4-$9.99 range signifies a probable support region if LINK falls, as bulls are poised to defend it against losses. A plunge to $4 seems possible only if bear pressure overwhelms the bulls. However, 54.46% profit margin may prompt buying to salvage gains, limiting losses around $10.

Maintaining above $12 could allow for LINK’s reversal, while breaking below may lead to testing $10. The “at money” holders indicate minimal selling pressure, retaining slight bullish sentiment unless trading volume declines drastically.