What’s Next for Chainlink Price After 53.87 Million Tokens Accumulated

Chainlink price has recently experienced a 1.87% dip, bringing it down to $14.18. This decline comes after a week of bearish sentiment, where LINK struggled to maintain levels above $15. The token is currently falling into a multi-year trendline, an important aspect of its overall market structure since the beginning of 2023.

This change is after several weeks of steady selling, which pushed LINK to the levels that were last experienced before the last market reset. The wider cryptocurrency market similarly experienced a decline of $0.85 in the last 24 hours, which is a sign of continued bearish action on the major currencies such as Bitcoin and Ethereum.

Chainlink Price Breaks $16 Support After 53.87M Tokens Accumulated

Chainlink price has recently broken through a significant support level at $16. This area had already served as a place where a major accumulation of tokens had occurred, amounting to 53.87 million LINK tokens.

This region has had high support according to the cost basis distribution heatmap, but the price has lost momentum.

According to the heatmap data provided by Glassnode, the price action may be considered highly significant, and the price of LINK was crucially dependent on the support zone that was at the price of $16. Nonetheless, this level has been lost by LINK in the recent downturn, which may be an indicator of further price hurdles in the near future.

Will Chainlink Price Recover Above $17 Level?

At the time of writing, the LINK price dropped to $14.23, marking a small decline of 0.42%. There is a consolidation of the market activity around this level, though the price fluctuates between the range of $14.00 and $14.50. 

The horizontal resistance zones in the chart indicate that Chainlink is currently experiencing resistance near the mark of 15.50 and $17.00.

If LINK fails to maintain support at $14.00, a move down to $13.00 is a possible target. On the other hand, when the Chainlink price can overcome the resistance of $14.50 and stay above it, the next possible resistance would be approximately $15.50, and then $17.00.

The crypto market is eyeing recovery, with the Chainlink price outlook for the long term is still bullish.

The MACD is showing a downward trend. The MACD line (blue) is lower than the signal line, and the histogram also indicates the negative momentum. This indicates that there may be more downward pressure in the future in case the trend does not change. 

The Relative Strength Index (RSI) stands at 41, which means that LINK is approaching the state of over-sell.

To sum up, the Chainlink price is facing resistance, and it might experience additional downward pressure in the near future. Nevertheless, the long-term perspective is good provided that it has the chance to stabilize and resume an upward trend.