Chainlink (LINK) faces a crucial test at key support levels as recent US tariff announcements continue impacting crypto markets. The token has declined over 40% in the past two months, with on-chain data now revealing critical price zones that could determine LINK’s next major move.
Key Findings from Glassnode’s Cost Basis Analysis
Leading blockchain analytics firm Glassnode has identified two major price clusters through Cost Basis Distribution (CBD) analysis that provide insight into LINK holder behavior and potential support/resistance levels:
- $16.00: Long-term holders showing strategic accumulation
- $14.60: More selective but conviction-driven buying activity
Strategic Accumulation at $16 Level
The data reveals high-conviction holders at the $16 mark have consistently accumulated during key downturns:
- December 2024: Added positions during $29 to $19 decline
- February 2025: Bought during $18 correction
- March 2025: Increased holdings at $12.70 low
$14.60 Zone Shows Strategic Buying Patterns
The $14.60 cluster demonstrates more selective but equally important accumulation patterns:
- December: Strategic entries at $17 and $28
- January: Accumulation at $25
- March 15: Increased positions following $12 bounce
Technical Outlook and Price Projections
With LINK currently trading at $14.00, the proximity to the $14.60 support zone creates a critical juncture. Technical indicators suggest:
- Strong holder conviction at both $14.60 and $16.00 levels
- Potential for support-turned-resistance scenario
- Key resistance levels at $16.00, $18.00, and $25.00
FAQ Section
What is Cost Basis Distribution (CBD)?
CBD is an on-chain metric that tracks at what price levels investors acquired their assets, helping identify potential support and resistance zones based on actual holder behavior.
Why are the $14.60 and $16.00 levels significant?
These levels represent major accumulation zones where long-term holders have demonstrated consistent buying behavior, suggesting strong support potential.
What could trigger a LINK price recovery?
A successful defense of the $14.60 support level, combined with improving market sentiment and increased institutional interest, could catalyze a recovery toward the $16.00 resistance.
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