Chainlink (LINK) price experienced a significant setback leading into mid-March, but there are indicators showing a potential recovery in the near future.
One key factor contributing to Chainlink’s potential recovery is the behavior of LINK investors. Despite recent losses, many investors are holding off on selling their holdings in an effort to recoup their losses. Analysis of the network activity reveals that a large majority of investors, around 85%, are either at a loss or breaking even, while only 15% are currently in profit. This suggests a strong desire among investors to push for a price recovery.
Recent data shows that almost 100,000 LINK addresses, accounting for nearly 14% of all LINK investors, have lost their profits in the past four days. Over half of LINK holders are currently in a loss position. These investors are likely to continue holding onto their positions in hopes of regaining their profits, which could potentially drive Chainlink’s price towards key resistance levels once again.
Looking at the price action, Chainlink has validated a bearish pattern with a low point of $11.98, indicating a descending triangle formation. The $17 level remains a critical barrier for LINK’s price movement, with a breach needed to confirm further upside potential. Currently trading at $14.54, Chainlink will need to overcome resistance levels at $14.62 and $15.69 to pave the way for a move towards $17, representing a potential 17% increase.
However, if Chainlink fails to breach these resistance levels, a downside movement could occur, limiting the price rise to $16. Further bearish pressure could invalidate the bullish scenario if support levels at $14 or $13.55 are breached.
Overall, the behavior of LINK investors and the technical price analysis suggest that Chainlink’s price may be on the path to recovery, with potential upside if key resistance levels are surpassed. It will be crucial to monitor the market dynamics and investor sentiment in the coming days to assess the likelihood of a successful price rebound.
