Chainlink (LINK) Rides High on Market Trends

Key Takeaways:

• Chainlink's price recovery is driven by broader market trends, showing green candlesticks and positive momentum.
• Investor confidence is high, as indicated by the increased Mean Coin Age, suggesting a HODLing behavior.
• The Global In/Out of the Money (GIOM) indicator shows that a significant supply of LINK is nearing profitability, which could sustain the bullish trend.

Chainlink's Green Candlesticks Signal Positive Trends

Chainlink’s (LINK) price recovery is currently driven by broader market cues, and the momentum appears to be gaining strength. Despite a traditionally bearish signal from the network’s low participation, the present scenario is relaying optimism and confidence in a rally, hinting at potential significant profits.

Chainlink's price is showing green candlesticks on the daily chart, supported by the resilience observed in investor actions. This resilience is reflected in the Mean Coin Age, a metric indicating the average age of all coins in circulation for a particular cryptocurrency. 

Source: Santiment

It helps assess investor holding behavior and potential selling pressure. The recent uptick in this metric suggests that investors are holding onto their coins (HODLing) rather than selling, signaling strong confidence and stability within the investor community.

Will LINK Flip Resistance into Support?

Typically, a lack of network participation would be considered bearish. However, the current optimism could sustain the altcoin's upward trajectory, leading to considerable profits for investors. The Global In/Out of the Money (GIOM) indicator reveals that about 182 million LINK, worth over $2.6 billion, are on the brink of profitability. 

Source: IntoTheBlock

This supply was acquired at prices between $13.86 and $15.57. With LINK needing only a 6% increase to reach $15.60, this supply is poised to become profitable soon. Consequently, investor anticipation is likely to deter selling, reducing bearish activity on the network and driving prices higher.

Currently, LINK is attempting to flip the $14.45 resistance level into support, trading at $14.63. A successful test of this level as support could propel the price towards the next resistance at $15.63. 

Source: BeInCrypto on TradingView

As the aforementioned supply turns profitable, further bullish sentiment could push the price beyond this resistance. However, if the initial attempt to flip $14.54 into support fails, LINK's price might slip to $13.76, invalidating the bullish outlook and potentially dropping the altcoin down to $12.93.

FAQs:

• What is driving Chainlink's current price recovery? Chainlink's price recovery is driven by broader market trends and increased investor confidence, as evidenced by green candlesticks on the daily chart.
• Why is the Mean Coin Age important for Chainlink's price? The Mean Coin Age indicates how long investors hold their coins, and a higher average suggests strong confidence and stability, reducing selling pressure.
• What could happen if LINK flips the $14.45 resistance into support? If LINK successfully flips the $14.45 resistance into support, it could propel the price towards the next resistance at $15.63, continuing the bullish trend.

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