Nick Chong · 7 hours ago · 2 min read
Chainlink › Analysis
Chainlink continues onboarding new investors as bulls defend critical support level
Chainlink has seen a notable recovery in the time following its latest selloff, with the cryptocurrency’s buyers defending it from dropping below the strong support that has been established around $3.50.
It just so happens that this level coincides with a critical technical support level that was briefly tapped during the course of this latest downtrend, and bull’s ardent defense of the level signals that it may be poised to see further near-term upside.
This volatility hasn’t stopped new investors from rushing into the altcoin either, as data signals that new investors are still accumulating LINK at rapid rates – even in the time following its major dip from its all-time highs.
Chainlink bounces at key level as bulls defend mid-term uptrend
Chainlink witnessed some notable selling pressure yesterday that led the crypto to decline all the way to its key support level at $3.50. This movement came about independent of the aggregated crypto market, as Bitcoin and most other major altcoins were consolidating at this time.
This plunge proved to be fleeting, however, as buyers quickly pushed it back up to highs of $3.75 earlier today, from which point it has only declined slightly to its current price of $3.66.
In addition to having horizontal support at $3.50, this level also happens to coincide closely with LINK’s 200-day moving average – a technical level of the utmost importance.
How assets respond to their 200MA can offer incredibly valuable insight into their long-term strength, and a dip below this level for Chainlink would have been dire for its macro-uptrend.
One popular analyst on Twitter who posts under the moniker “Teddy” offered a chart in a recent tweet showing the clean bounce it posted after tapping this level.
LINK continues attracting new investors despite decline from all-time highs
Chainlink’s notable decline from its all-time highs of nearly $5.00 hasn’t phased new investors, as data regarding the growth of the cryptocurrency’s wallet addresses with a non-zero balance paints a positive picture for its underlying strength.
This data, sourced from analytics platform IntoTheBlock, shows that new Chainlink wallets with a balance just climbed to fresh all-time highs this month, continuing to trend higher even in the face of its sharp decline from its all-time highs.
This means that LINK’s intense uptrend may be underpinned by solid buying pressure stemming from new investors.
Couple this with the defense of the cryptocurrency’s 200-day moving average, and it does appear that Chainlink has the potential to see significant further upside in the days and weeks ahead.