Since hitting a new 2023 high of $8.6 on April 18, LINK prices are down 18%. On-chain data shows that LINK has strong support around $7.
Chainlink has struggled to attract new users in recent weeks.Long-term holders stop selling first Hackathon The spring of 2023 is here. But will this be enough to attract new entrants to the network and spark a sustained bull market?
hold long term discontinued
The price of LINK has been in free fall since April 18. But longtime players in the Chainlink ecosystem appear to have stopped selling, according to data from Santiment.
As can be seen from the graph below, the average coin age of LINK has increased significantly over the past 2 months. Since the last dip around March 16, the average coin age has increased from 385.03 to 417.46 as of April 25.
price link and Average coin age in April 2023 | Source: mood
Average coin age measures the average holding time of all coins in circulation since the last transaction. An increase in this indicator could be a bullish sign, as it suggests that funds are being held for longer.
This shows that despite the recent downtrend, long-term network players remain confident in LINK’s long-term price prospects and utility.
Chainlink Investors to stack Order
Likewise, increased demand for LINK relative to current market supply is another sign of bullish momentum. IntoTheBlock’s Market Depth chart shows that LINK demand is almost double the number of tokens for sale in the +/-30% price range.
The chart below shows that investors placed buy orders for close to 3.39 million LINK, while active sell orders currently stand at 1.7 million tokens.
Chainlink On-Chain Transaction Depth April 2023 | Source: enter the block
The on-chain trading depth chart shows the total number of buy and sell limit orders placed by investors on different exchanges.
As shown in the chart above, when buy orders exceed sell orders, it indicates high demand for the asset around the current price. In other words, LINK could turn bullish in the coming days as buyers compete through higher bids.
LINK Price Prediction: PBulls can hold support at $6.50
According to breakeven price data provided by IntoTheBlock, bulls bought 105 million LINK at an average price of $7, which is expected to be enough to defend the $6.95 area.
However, some of the 32,500 addresses that bought 105 million LINK at the top price of $7.13 may try to prevent the breakout when the situation stabilizes.
Once LINK breaks above this resistance, it will head towards its year-to-date high of $8.63. However, the 67,000 holders who bought 89 million coins around this price zone may pose another obstacle.
Breakeven price distribution data Link | Source: enter the block
Conversely, bears can invalidate the bullish stance as LINK loses support at $6.95. If that happens, holders should brace for the risk of a further drop to $6.11. Here, 80,000 addresses bought 553 million tokens, which can be significantly supported.
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