An analyst has recently highlighted the potential for Chainlink to reach a new all-time high, depending on its ability to surpass a significant resistance level. The current focus is on the $20 level, where many investors have established their positions.
The analysis indicates that a substantial number of Chainlink investors bought their tokens in the range of $18.4 to $26.3. Approximately 100,220 addresses collectively hold 57.2 million LINK tokens acquired within this price range. The distribution of these acquisitions provides insight into the psychological factors influencing investor behavior and how they may react if prices revisit these levels.
Typically, the cost basis — which is the average price at which investors purchased their assets — serves as a critical support or resistance level. When prices reach this point again, holders experiencing losses may panic and decide to sell, while others who encounter their cost basis from a positive angle may choose to buy more, hoping for a price recovery. The overall reaction to a price retest can lead to significant market fluctuations if many investors share a similar cost basis in a narrow range.
Given that many investors have their cost basis clustered around the $22 average, breaking through this level could prove challenging. However, if Chainlink successfully overcomes it, there could be minimal resistance driving prices toward a new all-time high, as fewer investors have purchased tokens at prices beyond $22.
If Chainlink experiences a downturn, crucial support levels exist between $13 to $15 and $11 to $13, which may help stabilize prices. Recently, Chainlink has seen a near 10% rally, bringing its price up to the $18.4 level, further intensifying the focus on its resistance and support levels in the days ahead.
