Chainlink investors buy the dip as more than $1 billion in BTC futures were liquidated in the past few hours as the entire market went into flames. However, LINK holders seem to have taken advantage of the low prices and added more to their holdings as we are reading more in the upcoming Chainlink news.
Chainlink took a 21% nosedive but quickly recovered and the data shows that investors continued to accumulate LINK despite the recent price action. If the buying pressure continues increasing, the oracles token could hit $11. Chainlink’s uptrend was not interrupted by the recent crypto market crash as the Chainlink investors buy the dip which may lead to more price rises. The cryptocurrency increased to a high of $8.5 but a few hours after the daily close as the market crashed taking Chainlink down with it. The decentralized oracles token took a 21% drop within 30 minutes and reached a low of $6.6
Regardless of the price action, investors seem to have taken advantage of the token accumulation. Santiment’s holder distribution charts show that the prices are dropping and the buying pressure behind Chainlink’s surge recently. The behavioral analytics company registered a spike in the number of addresses holding between 1000 and 10 million coins. The investors entered the market and the prices were quickly able to recover. LINK rebounded and soared 33% to make a higher high of $8.8 Looking at the LINK 1-day chart, the asset seems the price bounced off the x-axis of the descending triangle as the technical formation is a huge part of the bull flag that was developing within the time frame.
The target is determined by measuring the height of the flagpole and adding to the breakout point. The new levels of volatility around Chainlink flushed out the weak hands and it could be preparing for a continued uptrend. Another spike in demand for the altcoin could see it rise towards $11. Looking at the In/Out of the Money Around Price model which reveals that there isn’t any barrier supply which will prevent it from reaching an upside potential. The on-chain metric suggests that a few areas of interest could hold in an event of a further correction.
The $7.7 support level could be able to absorb the pressure and more than 9600 million addresses purchased 9.5 million LINK around the same level. Holders within the price range could remain profitable in the long positions and can purchase more tokens to allow the prices to increase.
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