The price of Chainlink (LINK) rose 7% on May 24, despite a decline in the broader cryptocurrency market.
Currently priced at $17.04, LINK has seen a staggering 30% increase so far in May, leading investors to wonder if the drivers for a rally above $20 are still there .
Let’s take a look at the factors that could cause LINK’s price to rise.
On-Chain Metrics Reveal Positive Trend Towards LINK Price
According to an article published on May 24 by trading information company Santiment, on-chain metrics paint an optimistic picture for LINK, with the price significantly outperforming other cryptocurrencies, hitting a six-week high of $17.50 on the 24th. may.
The data reveals that LINK’s ratio of profitable trades to losing trades is 11 to 1, representing the most favorable ratio since December 8, 2022.
“Chainlink exits the markets and reaches its highest level in 6 weeks with a profit level at its highest in 17 months.”
Additional data from Santiment reveals that activity on the Chainlink network has increased since mid-May. The chart below shows that the number of daily active addresses transacting on the Chainlink blockchain increased from 3,159 on May 14 to $11,304 on May 22. Meanwhile, development activity has increased from 421 unique GitHub repositories in mid-April to the current value of 436.
In a May 22 article on
“Chainlink, Status and Ethereum are the best developed ERC-20s in the crypto space, and traders are waiting for new ETFs.”
Increased network activity shows that more people are using the Chainlink blockchain, which means increased demand and value for LINK.
Strong Technical Setup Supports LINK Price
Data from Cointelegraph Markets Pro and TradingView shows that LINK price rebounded from the horizontal support line of a descending triangle at $13 on May 15, rising 36% to a six-week high of 17, $50 on May 24.
This uptrend has seen price break out of the descending triangle and swing key resistance levels towards support, including the barrier at $15, which the 50 and 200 day EMA and 100 day EMA are currently at 16 $. . These moving averages provide strong support zones for LINK on the downside.
Additionally, the Relative Strength Index (RSI) increased from 36 to 65 during the same period. This indicates that buyers have taken control of the price, thereby reinforcing the strength of the uptrend.
Additionally, the IntoTheBlock (IOMAP) entry/exit price model revealed that LINK enjoyed relatively strong support on the downside compared to the resistance it faced on the upside.
This means that the path of least resistance for LINK was up.
about: Chainlink (LINK) price hit a one-year high above $20
Traders expect LINK price to rise further
Independent Crypto trader Yapper acknowledged LINK’s exit from the descending triangle, as previously described, saying the price “looks bullish.” Yaber said this in a May 24 post on social platform X, adding that the price was fighting resistance at $17.5.0, which if broken would turn into support.
“If we confirm the breakout, we can expect a retest to turn this resistance into support.”
Another trader, Mister Crypto, expressed confidence in Chainlink’s future price performance, noting that LINK would easily surpass the $50 mark again during this rally.
Another Chainlink user Red Pill
“Chainlink will make the token incredibly profitable for the world’s largest financial entities,” they said, urging over 17,000 Flowers to recognize the opportunity that awaits LINK, as it could grow 100x from current levels.
“I really wouldn’t be surprised if the distance is 50 to 100 times greater than here. Most of them will.
This sentiment reflects the growing optimism surrounding Chainlink’s fundamental value and its ability to generate significant growth in the cryptocurrency market.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
