- Chainlink price has strong support at $18
- MACD shows increasing bullish market momentum.
Since June 22, the Chainlink price has been stuck between $16.80 and $20. Prior to this, LINK had plummeted from $25 to $16.80 between June 15 and June 22. Let’s take a closer look at technical analysis.
Chainlink Price Again Struggles Below 20-day SMA
Since July 7, the Chainlink price has dropped from $20 to $17.65. During this drop, LINK managed to flip the 20-day SMA from support to resistance. The relative strength index (RSI) indicates that the buyers and sellers have cancelled each other out.
Image: LINK/USD daily
The Chainlink price faces immediate resistance at the 20-day SMA ($18.50). As per IntoTheBlock’s IOMAP, ~11,000 addresses had purchased almost 12.5 million LINK tokens at this level.
Chainlink Centralization: Top 10 Whales Hold 63.3% LINK Circulating
According to Santiment, the top ten Chainlink whale addresses now hold 63.3% of LINK’s circulating supply. The firm also pointed out that this is the lowest percentage of LINK’s circulating supply held by the said top ten whales since the project’s launch in 2017. The team at Santiment shared their analysis through the following statement and accompanying chart.
"Chainlink's top 10 whale addresses have less of a stranglehold on the total supply of $7LINK (63.3%) than ever, since the coin’s public inception in Sep, 2017. For top assets, whales eventually owning under half the supply is generally a good thing."
As per the chart, Chainlink whales held roughly 67.5% of LINK’s circulating supply in January this year. Additionally, the same whales held around 69% of Chainlink’s circulating supply throughout the fourth quarter of 2020. This translates to an encouraging and ongoing redistribution of LINK holdings away from the whales to other holders.
LINK is still in the bear territory as it trades below the 50-day, 100-day, and 200-day moving averages as highlighted in the chart below. Additionally, Chainlink is currently trading within a descending triangle with a floor at the $15 support area that was held on May 23rd and June 22nd.
Chainlink Price Is Expected To Reach These Levels
The Chainlink price needs to overcome the 20-day SMA to revisit the $20 resistance barrier.