This Could Be the Start of a Chainlink (LINK) Price Rally

According to a chart shared by popular crypto analyst on twitter Ali (@ali-charts), there has been a significant purchase of Chainlink's native token ($LINK) at the $6.30 price range.

Popular crypto analyst on X (formerly Twitter), Ali (@ali-charts), shared a chart detailing a significant purchase of Chainlink’s native token at the $6.30 price range.

According to the analyst, this price region is a strong support level for $LINK. At this point, a total of 376 million $LINK were bought by the crypto behemoths.

As shown by the green clusters, the chart showed that buyers piled up at this price point, which is an indication of strong conviction from large holders, also known as whales.

According to the analyst, most of the wallets that purchased the token at this price are still holding it, hence they are in profit. With so many buyers at this point, it is unlikely that $LINK’s price will drop below this level.

However, at the $15.22 price point, there was a large amount of selling activity, which is indicated by the red clusters. According to the analyst, this price is a key resistance level for investors and traders. At such levels, selling pressure is greater than buying pressure, leading to a pause or reversal in the coin price’s upward movement.

According to the analyst, the addresses that purchased at this price are currently holding in losses. Hence, if the coin’s price reaches this level again, many of them may choose to sell to recoup their investments, even though it would be without any profit.

According to the analyst, this could add to the selling pressure at this price level.

Chainlink’s Support Vs Resistance Zone

The analyst explained that Chainlink‘s price movement in the medium term will be determined by the interplay between the support price point of $6.30 and the resistance price point of $15.22.

Should $LINK break above the $15.22 resistance price level following strong trading volume, it could start a stronger rally. In contrast, it fails to break above this price, it could reverse back towards the established support levels.

Traders seeking to make any position (buy or sell) would need to pay attention to broader market sentiment and trading volume between these important support and resistance levels.