Billions worth of LINK are now going to try to prevent potential plunge below $6.7
On-chain data for Chainlink suggests that traders formed a significant support for the token at around the price of $6.70. The transaction history suggests that 7,000 addresses are ready to grab over 300 million LINK.
The IOMAP indicator shows the percentage of investors that are making profits around a certain price and the buying or selling volume, which allows us to determine local support and resistance levels.
At around $6.70, over 7,000 investors and traders placed 300 million LINK worth of orders, with more than $2 billion worth of volume. Whenever such a large volume appears around a certain price level, it usually becomes a support level, as bears need to cover the existing sum of orders to push the price to a lower level.
The next major support level remains at around $6.20, while no major resistance levels are seen ahead, so even insignificant inflows to the cryptocurrency might push it to new local highs.
Chainlink technical analysis
According to the daily chart of the token, LINK is actively trying to enter the reversal rally as the asset successfully broke through the 50-day moving average and is now aiming at the next resistance level of the 200-day moving average at around $11.
Additionally, LINK broke the local trendline resistance level, which is a strong bullish signal that might lead to a short- to midterm rally on Chainlink. Other factors show that the downtrend on the cryptocurrency is slowly fading, and LINK has all the chances to show significant price performance in the foreseeable future.
At press time, Link is changing hands at $7.6 and is showing a 5.5% price increase in the last 24 hours.