- LINK’s accumulation phases signal investor confidence, supporting its ongoing uptrend amid shifting supply redistributions.
- Historical trends show LINK’s cyclical behavior, with accumulation driving uptrends and distribution preceding corrections.
- Heatmap analysis reveals liquidity zones, highlighting key support and resistance levels that influence LINK’s price movements
Chainlink (LINK) has undergone multiple accumulation and distribution phases over the past three years. According to Glassnode’s Cost Basis Distribution metric, LINK has shown key supply clusters, reflecting investor positioning. Besides, the heatmap analysis highlights market resilience and liquidity-driven price reactions. Recently, LINK has maintained an upward trajectory, with supply redistributions occurring at different levels.
Historical Trends and Market Cycles
Between early 2020 and late 2021, LINK saw its rise peak before a significant correction. The change created much volatility in the market, which started forming local highs and lows in 2021. Further steep drops in 2022 began a long-term downtrend that set the stage for a phase of bottoming out.
In 2023, LINK’s price stabilized, displaying periodic upward movements followed by sideways consolidation. Moreover, the heatmap indicated higher supply concentration at specific price levels, signaling investor accumulation and distribution. By early 2024, LINK broke out from its consolidation range and started climbing. Hence, the heatmap revealed supply resistance at certain levels, confirming increased trading activity.
Current Market Position and Future Outlook
As LINK continued its ascent in 2024, previous resistance levels transformed into new support zones. Additionally, the latest market movements show increased supply concentration near peak levels, suggesting heightened investor activity. Hence, historical data indicates cyclical behavior, with accumulation preceding uptrends and distribution occurring before price corrections.
Glassnode’s analysis highlights liquidity zones where price reacts with increased buying or selling pressure. Consequently, traders observe recurring support and resistance patterns, aligning with historical trends. Moreover, the heatmap reflects supply clusters that indicate potential future price movements based on past market interactions.
LINK’s current upward momentum is supported by strong accumulation zones. Besides, investor confidence remains evident as supply redistributions continue at different price levels. However, fluctuations in momentum remain possible due to historical market patterns.
