Chainlink (LINK) Price Analysis: Cost Basis Distribution (CBD) Metric Highlights Key Clusters

The broader digital currency ecosystem is still undergoing massive bearish consolidation, with Chainlink (LINK) price also in the spotlight.

Chainlink price has shown resilience amid broader digital currency bearish consolidation, with LINK showing signs of accumulation according to Glassnode.

Chainlink (LINK) price saw marginal gains on 24 August as the broader digital currency ecosystem consolidated in the red. Despite the recent bearish activity, one analytics platform has shared insight into LINK’s accumulation and distribution over time and its impact on potential price moves.

Chainlink CBD Analysis: Key Clusters to Note

Analytics platform Glassnode shared on X, previously Twitter, that the Cost Basis Distribution (CBD) metric helps identify cost basis clusters, assess market resilience, and track investor positioning.

According to its latest analysis, in 2021, wallets with a cost basis of around $25 held roughly 11 million LINK. Despite price fluctuations, this cluster has refused to sell their LINK tokens.

However, in 2023, another set of investors bought about 66 million Chainlink at $7. While these investors have since raised their cost basis, LINK price has shown resilience amid volatility.

As Glassnode pointed out, two clusters remain significant. These include the $16 price range, where investors bought 16 million LINK, and the $14.8 level with 53 million tokens.

“Despite recent price declines, supply at these levels has not been redistributed, indicating that holders at these cost bases remain in position rather than rotating out of the market.”

Chainlink Price Shows Support

Despite the recovery moves, an earlier Bitcoin price analysis shows that the market is not out of the woods yet. With a recent flash crash, the crypto market recorded another liquidation worth about $430 million before slowing down.

Chainlink was caught in all these uncertain price actions but has shown resilience amid each fall. In the past 24 hours, the coin traded within a very close range, from a low of $14.72 to a high of $15.69.

This price action aligns with Glassnode projections on the token’s support and resistance levels.

The Chainlink price support is pegged at $14.8, and the resistance zone is approximately $16.

One key reason for the Oracle protocol’s resilience is its role in the Decentralized Finance ecosystem. Chainlink has developed solutions like its Interoperability protocol CCIP to help boost connections among DeFi players.

This innovation complements its primary role as a data resource, helping LINK retain its relevance in the altcoin world. Per an earlier LINK price analysis, the prospect of the coin jumping by 312% was explored, drawing on its growing ecosystem.