Chainlink (LINK) experienced a 7% increase in price on May 24, despite the broader cryptocurrency market facing a downturn. Currently valued at $17.04, LINK has seen a remarkable 30% surge in May, leading investors to question whether the factors driving a rally above $20 are still present.
On-chain metrics indicate positive sentiment for LINK price. Market intelligence firm Santiment reported on May 24 that on-chain metrics are illustrating a bullish outlook for LINK. The price has notably outperformed other cryptocurrencies, reaching a six-week high of $17.50. The data reveals that LINK’s ratio of profitable transactions to loss-making ones stands at 11 to 1, the most favorable ratio since December 8, 2022.
Further data from Santiment indicates an increase in activity on the Chainlink network since mid-May. The number of daily active addresses engaging with the Chainlink blockchain has risen from 3,159 on May 14 to 11,304 on May 22. Development activity has also seen a jump from 421 unique GitHub repositories in mid-April to the current value of 436. These metrics suggest that more people are utilizing the Chainlink blockchain, indicating higher demand and value for LINK.
LINK price is backed by a strong technical setup. Data from Cointelegraph Markets Pro and TradingView shows that the LINK price rebounded from a horizontal support line of a descending triangle at $13 on May 15, increasing by 36% to reach a six-week high of $17.50 on May 24. This upward trend allowed the price to break free from the bearish triangle and convert key resistance levels into support. The 50-day and 200-day exponential moving averages (EMAs), as well as the 100-day EMA, all at $16, provide strong support areas for LINK on the downside. Additionally, the relative strength index (RSI) has risen from 36 to 65, indicating that buyers have taken control and reinforcing the strength of the uptrend.
Moreover, the In/Out of the Money Around Price (IOMAP) model from IntoTheBlock reveals that LINK has strong support on the downside compared to the resistance it faces on the upside. This suggests that the path of least resistance for LINK is on the upside.
Traders anticipate further upside for LINK price. Independent trader Crypto Yapper acknowledged LINK’s breakout from a bearish triangle, stating that the price “looks bullish.” Fellow trader Mister Crypto expressed confidence in Chainlink’s future price performance, predicting that LINK will easily surpass the $50 mark once again during this bull run. Another user, Chainlink Red Pill, believes that LINK is undervalued considering its fundamental value proposition. They assert that Chainlink will make tokenization highly profitable for major financial entities, urging their followers to recognize the opportunity that lies ahead with LINK potentially increasing 100 times from current levels.
Overall, there is growing optimism surrounding Chainlink’s fundamental value and its potential to drive significant growth in the cryptocurrency market. However, this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.