Chainlink (LINK) experienced a 7% price increase on May 24, despite the broader cryptocurrency market facing a downturn. Currently priced at $17.04, LINK has seen an impressive 30% increase so far in May, leading investors to question whether the conditions for a rally above $20 still exist.
The positive sentiment for LINK price is supported by on-chain metrics. According to a recent report by market intelligence firm Santiment, the price of LINK has outperformed other cryptocurrencies, reaching a six-week high of $17.50 on May 24. The data also reveals that the ratio of profitable transactions to loss-making ones for LINK stands at 11 to 1, the most favorable ratio since December 8, 2022.
Additionally, activity on the Chainlink network has been on the rise since mid-May. The number of daily active addresses engaging with the Chainlink blockchain has increased from 3,159 on May 14 to 11,304 on May 22. Furthermore, development activity has also increased, with the number of unique GitHub repositories rising from 421 in mid-April to 436 currently.
Chainlink was listed as the network with the highest daily development activity rates among top ERC-20 related coins over the past 30 days, according to Santiment.
The increasing network activity indicates a higher demand and value for LINK, as more people are using the Chainlink blockchain.
From a technical perspective, the LINK price has shown strength. It bounced off a horizontal support line of a descending triangle at $13 on May 15, rising 36% to reach a six-week high at $17.50 on May 24. The price has also broken through key resistance levels and is supported by various moving averages.
The relative strength index (RSI) has risen from 36 to 65, suggesting that buyers have taken control of the price and reinforcing the strength of the uptrend.
The In/Out of the Money Around Price (IOMAP) model from IntoTheBlock indicates 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 and users on the X social platform are optimistic about LINK’s future price performance. Crypto Yapper noted the breakout from a bearish triangle and described the price as “bullish.” Mister Crypto expressed confidence that LINK will surpass the $50 mark once again during this bull run. Chainlink Red Pill believes LINK is currently underpriced and has the potential to multiply as much as 100X from its current levels.
Overall, there is growing optimism surrounding Chainlink’s fundamental value and its potential to drive significant growth in the cryptocurrency market. However, readers should conduct their own research and be aware of the risks involved in investing and trading.