Chainlink: Key info for LINK holders to avoid potential losses

ambcrypto.com:

LINK was up almost 60% from its lowest point in July and roughly 27% in the last days on 10 August. However, at the time of writing, it was fast approaching an important resistance level that might disrupt LINK’s latest upside.

LINK traded at $9.17 at press time after extending its upside by 4.94% in the last 24 hours.

This was an important range because it previously demonstrated resistance near the $9.40 price level. The crypto will likely encounter resistance near the $9.40 price zone.

Source: TradingView

The MACD suggested that there is lower momentum at LINK’s current price level compared to its momentum on 9 June.

The latter is the previous time that the price encountered a sizable bearish retracement.

The current expectation is that the upcoming resistance line will trigger a retracement. However, that does not necessarily have to be the outcome if there will be enough demand to push up further.

On-chain metrics may help determine the potential outcome.

The number of active addresses holding LINK increased substantially in the last four days to 2564 addresses by 9 August.

However, the increase tapered out between 8 and 9 August. In fact, the difference between the sending and receiving addresses highlighted something interesting.

Source: Glassnode

Receiving addresses dropped from 2,001 to 1,711 between 8 and 9 August. On the other hand, sending addresses continued increasing from 1,364 to 1,690.

This was a sign that the selling pressure was increasing as the price approached the $9.40 resistance line.

Furthermore, LINK’s supply distribution by balance of addresses suggested that there is still not enough selling pressure at its press time price.

However, addresses holding between one million and 10 million coins offloaded some