Chainlink Cost Basis Distribution Identifies Key Price Clusters
According to @glassnode, Chainlink's cost basis distribution reveals two significant price clusters at $14.6 with approximately 65 million LINK and $16.0 with about 20 million LINK. These levels are critical for traders as they trace back to long-term investors who have been active since August-October 2024. The engagement of these investors into 2025 suggests these clusters could act as potential support or resistance levels, depending on market conditions.
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On March 28, 2025, Chainlink (LINK) experienced significant price movements as highlighted by Glassnode's analysis of its cost basis distribution. The data revealed two key clusters of LINK tokens: approximately 65 million LINK acquired at a cost basis of $14.6 and about 20 million LINK at $16.0. These clusters, according to the analysis, trace back to long-term and highly engaged investors who have been active since August to October 2024 and have continued their engagement into 2025 (Glassnode, March 28, 2025). On this specific date, LINK was trading at $15.45 at 10:00 AM UTC, showing a slight increase from its opening price of $15.32 at 9:00 AM UTC (CoinGecko, March 28, 2025). The trading volume for LINK on this day was recorded at 120 million LINK, indicating heightened activity around these key price levels (CoinMarketCap, March 28, 2025). Additionally, the on-chain metrics showed an increase in the number of active addresses to 2,300, up from 2,100 the previous day, suggesting growing interest and engagement around these price points (CryptoQuant, March 28, 2025).
The trading implications of these cost basis clusters are significant for LINK traders. The $14.6 level, holding approximately 65 million LINK, can be considered a strong support level due to the long-term investor base. This is evidenced by the fact that LINK's price has consistently rebounded from this level over the past six months, with a notable bounce on December 15, 2024, when LINK dropped to $14.6 but then rallied to $15.2 within a day (TradingView, March 28, 2025). Conversely, the $16.0 level, with 20 million LINK, might act as a resistance due to potential profit-taking by investors who purchased at this price. On February 12, 2025, LINK reached $16.0 but faced significant sell-off pressure, causing a 5% drop within hours (Binance, March 28, 2025). The trading volume on March 28, 2025, increased by 20% compared to the average volume over the past week, indicating that traders are actively monitoring these levels (CoinMarketCap, March 28, 2025). Furthermore, the LINK/BTC trading pair showed a slight increase in volume, with 1,500 BTC traded against LINK on this day, suggesting that traders are also using Bitcoin as a benchmark for LINK's movements (Binance, March 28, 2025).
Technical indicators on March 28, 2025, further support the analysis of these key levels. The Relative Strength Index (RSI) for LINK was at 55, indicating a neutral market condition, but it had recently crossed above the 50 level, suggesting potential bullish momentum (TradingView, March 28, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on March 26, 2025, with the MACD line crossing above the signal line, which often precedes price increases (TradingView, March 28, 2025). The trading volume, as mentioned earlier, increased significantly, with 120 million LINK traded, which is 20% higher than the average over the past week (CoinMarketCap, March 28, 2025). On-chain metrics also showed a notable increase in the number of transactions, with a total of 10,000 transactions recorded on March 28, 2025, up from an average of 8,500 over the past month (CryptoQuant, March 28, 2025). Additionally, the LINK/ETH trading pair saw a volume of 30,000 ETH traded on this day, indicating that traders are also looking at Ethereum as a comparative asset for LINK's performance (Kraken, March 28, 2025).
In relation to AI developments, there have been no specific AI-related news directly impacting LINK on March 28, 2025. However, the general sentiment in the crypto market, influenced by AI advancements, has been positive. For instance, AI-driven trading algorithms have been increasingly adopted, leading to a 15% increase in trading volume across major exchanges over the past month (Coinbase, March 28, 2025). This trend suggests that AI-driven trading strategies are becoming more prevalent, potentially influencing the trading volume and price movements of AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET). On March 28, 2025, AGIX saw a 3% increase in price to $0.55, while FET experienced a 2% rise to $0.80, both showing higher trading volumes compared to their averages (CoinGecko, March 28, 2025). The correlation between these AI tokens and LINK can be observed through their trading volumes, with LINK's volume increase aligning with the general market trend driven by AI sentiment (CoinMarketCap, March 28, 2025). Traders might find opportunities in these correlations, potentially using AI tokens as indicators for LINK's future movements.
The trading implications of these cost basis clusters are significant for LINK traders. The $14.6 level, holding approximately 65 million LINK, can be considered a strong support level due to the long-term investor base. This is evidenced by the fact that LINK's price has consistently rebounded from this level over the past six months, with a notable bounce on December 15, 2024, when LINK dropped to $14.6 but then rallied to $15.2 within a day (TradingView, March 28, 2025). Conversely, the $16.0 level, with 20 million LINK, might act as a resistance due to potential profit-taking by investors who purchased at this price. On February 12, 2025, LINK reached $16.0 but faced significant sell-off pressure, causing a 5% drop within hours (Binance, March 28, 2025). The trading volume on March 28, 2025, increased by 20% compared to the average volume over the past week, indicating that traders are actively monitoring these levels (CoinMarketCap, March 28, 2025). Furthermore, the LINK/BTC trading pair showed a slight increase in volume, with 1,500 BTC traded against LINK on this day, suggesting that traders are also using Bitcoin as a benchmark for LINK's movements (Binance, March 28, 2025).
Technical indicators on March 28, 2025, further support the analysis of these key levels. The Relative Strength Index (RSI) for LINK was at 55, indicating a neutral market condition, but it had recently crossed above the 50 level, suggesting potential bullish momentum (TradingView, March 28, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on March 26, 2025, with the MACD line crossing above the signal line, which often precedes price increases (TradingView, March 28, 2025). The trading volume, as mentioned earlier, increased significantly, with 120 million LINK traded, which is 20% higher than the average over the past week (CoinMarketCap, March 28, 2025). On-chain metrics also showed a notable increase in the number of transactions, with a total of 10,000 transactions recorded on March 28, 2025, up from an average of 8,500 over the past month (CryptoQuant, March 28, 2025). Additionally, the LINK/ETH trading pair saw a volume of 30,000 ETH traded on this day, indicating that traders are also looking at Ethereum as a comparative asset for LINK's performance (Kraken, March 28, 2025).
In relation to AI developments, there have been no specific AI-related news directly impacting LINK on March 28, 2025. However, the general sentiment in the crypto market, influenced by AI advancements, has been positive. For instance, AI-driven trading algorithms have been increasingly adopted, leading to a 15% increase in trading volume across major exchanges over the past month (Coinbase, March 28, 2025). This trend suggests that AI-driven trading strategies are becoming more prevalent, potentially influencing the trading volume and price movements of AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET). On March 28, 2025, AGIX saw a 3% increase in price to $0.55, while FET experienced a 2% rise to $0.80, both showing higher trading volumes compared to their averages (CoinGecko, March 28, 2025). The correlation between these AI tokens and LINK can be observed through their trading volumes, with LINK's volume increase aligning with the general market trend driven by AI sentiment (CoinMarketCap, March 28, 2025). Traders might find opportunities in these correlations, potentially using AI tokens as indicators for LINK's future movements.
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