Cryptocurrency traders are looking to recoup spot positions that have lost over 50% since 2021. In this article, let’s take a look at what’s next for an altcoin with 70% of its holders expecting a loss.
Thousands of investors waiting at a loss can take action at this level
According to the latest data from IntoTheBlock, despite the steady price action of Chainlink (LINK) over the past six months, 70% of its investors are currently at a loss. This statistic has taken many cryptocurrencies, including Bitcoin, under its influence.
The data also shows that there is a significant resistance ahead of LINK price and the next support zone is between $3.7 and $6.34. Investors need to consider these levels when evaluating their investment decisions.
Altcoin traders may choose to close their positions at this level
Currently, the breakeven price for many LINK traders is close to $30. This means that altcoin traders can recoup their losses in this region first and therefore the level can be a strong resistance.
Investors who want to add LINK to their portfolio should also consider correlations. The data shows that LINK is only significantly correlated with Bitcoin (BTC), Ethereum (ETH) and MATIC and not strongly correlated with other popular altcoins such as SHIB, DOGE or LTC. This could mean that LINK is potentially a good option for investment portfolios.
Finally, the data shows that LINK’s transfer activity peaked on Thursdays, creating the potential for massive price movements. Buyers and sellers can pay special attention to Thursdays, as it can affect high stock market liquidity. Also, this seasonality pattern should be taken into account when investing in Chainlink.
In conclusion, although the stable price action of LINK over the last six months indicates that it is a safe investment, it should be noted that many LINK investors are currently at a loss. Alongside the resistance and support zones, the breakeven price is important for many LINK traders to consider. Additionally, considering correlations with other altcoins and the seasonal pattern of LINK’s transfer activity can help investors make informed decisions when adding LINK to their portfolios.
Key catalysts to raise LINK price
In one of these catalysts, Chainlink announced on March 3 its integration with the Base testnet, a Layer-2 solution owned by crypto exchange Coinbase. According to the press release, the L2 platform will also participate in the Chainlink SCALE program. This program offers Chainlink data and services to developers at a lower cost. Hence, it opens a new space for both the use of the Chainlink network and the recovery of the LINK price.
cryptocoin.comAs you follow, Chainlink (LINK) has been in a sharp downtrend since last week. The oracle platform, which has managed to stay among the top 20 according to its market value, is currently priced at $ 6.73.
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