Recent data suggests that Chainlink (LINK) has garnered significant buying interest at the $16 price point. On October 19, over 54.47 million LINK were acquired, as per a cost basis heatmap provided by analyst Ali Martinez.

As the current price hovers around $18, with a 24-hour drop of 5% and a weekly loss of 3%, daily trading volume is reported at $1.05 billion.

$16 Identified as Heavy Accumulation Range

The analysis indicates a high concentration of wallet activities at $16, transforming it into a pivotal reference zone on the chart. This dense cluster of activity suggests that many traders see inherent value at this level, creating substantial holding pressure that could limit selling, especially if the price returns to that region.

Ali Martinez referred to this area as a strong support zone, emphasizing the volume of held tokens.

There are also indications of a long-term triangle formation, with LINK trading in a tight range between two trendlines. Currently, the price is found at the center of this formation.

Analyst Statement

“When Chainlink breaks past $25, it might trigger a bullish rally towards $100.”

Fibonacci projections forecast potential continuation at $32, $53, $74, and even $99 if it manages to break and maintain above $25.

Historical Price Action and Market Response

Insights into LINK’s historical performance reveal its resilience post-major downturns. In March 2020, during the COVID-19 market crash, LINK plummeted 80% in a single day, but subsequently saw a remarkable recovery of over 3,700% in the following 15 months, reaching above $50.

After hitting a peak in 2021, LINK faced a downtrend, stabilizing between $5 and $8 by late 2022. Recent advancements have seen it back near the $18 mark.

On-Chain Activity Indicates Local Strength

On-chain metrics from Santiment indicate that when the average returns for LINK holders dip below -5%, recovery is often imminent. This threshold was observed again recently, suggesting renewed interest in accumulation.