70% of Chainlink Holders at a Loss: What Does This Mean for Investors?

As the world of cryptocurrency continues to evolve, investors and traders are constantly looking for new opportunities to diversify their portfolios and capitalize on emerging trends. One such altcoin that has garnered significant attention in recent years is Chainlink (LINK).

According to recent data from IntoTheBlock, despite the stable price movement of LINK over the past six months, 70% of its holders are currently at a loss. This is not an uncommon occurrence for many altcoins, but it is still something that investors need to keep in mind when considering adding LINK to their portfolios.

The data also suggests that there is significant resistance if the price of LINK moves up, and the next support zone is between $3.7 and $6.34. This indicates an interesting demand zone that investors should take into account when considering their investment decisions.

Furthermore, the break-even price for many LINK holders is closer to $30, which means that the price must move a lot for these holders to sell. This is important information for investors to consider, as it indicates that the price of LINK must increase significantly before many holders are willing to sell their holdings.

Investors looking to add LINK to their portfolios should also take correlations into account. The data shows that LINK is only significantly correlated to Bitcoin (BTC), Ethereum (ETH), and MATIC, and is not strongly correlated to other popular altcoins such as SHIB, DOGE, or LTC. This makes it a potentially good option for a portfolio that is heavy in those assets.

Finally, the data also shows that LINK’s transfer activity peaks on Thursdays, which creates the potential for large price movements. This is useful information for buyers and sellers, as high trading can impact exchange liquidity. Investors should consider this seasonality pattern when investing in Chainlink.

In conclusion, while the stable price movement of LINK over the past six months may make it seem like a safe investment, investors should keep in mind that many LINK holders are currently at a loss. It is important to take into account the resistance and support zones, as well as the break-even price for many LINK holders. Additionally, considering correlations with other altcoins and the seasonality pattern of LINK’s transfer activity can help investors make informed decisions when adding LINK to their portfolios.

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