- Chainlink’s(LINK) active addresses surged 4x, hinting at growing demand and bullish momentum.
- The LINK price eyes a breakout above $17.58, potentially rallying to $22 amid market optimism.
Chainlink (LINK) Price Jumps 7.5%, This Breakout To Trigger Major Rally
Oracle service provider Chainlink (LINK) has recently decoupled from the broader market correction, surging by more than 7.5% in the last 24 hours. As of now, the LINK price is flirting with its crucial resistance level at $17.58, with a market cap exceeding $10.1 billion. This rapid ascent has been accompanied by a significant 80% increase in daily trading volume, which has now reached $858 million.
Chainlink On-Chain Data Flashes Bullish Signal
On-chain data provider Santiment has highlighted Chainlink as a standout performer within the cryptocurrency market. The number of active addresses on the Chainlink network has quadrupled from 2,900 on May 18 to an impressive 11,300 by May 21. This surge reflects a growing demand and increasing user engagement with the Chainlink platform.
Moreover, today’s on-chain analysis reveals a remarkable trend: for every Chainlink transaction recorded at a loss, there are 11 transactions showing a profit. This 11:1 profit-to-loss transaction ratio is the highest observed since December 8, 2022, underscoring the strong bullish sentiment surrounding LINK’s recent price movements.
This Breakout Can Trigger A Major For LINK the link price.
Currently, the Chainlink price is battling resistance due to a daily bearish order block at $17.58, a level where significant market participants have historically placed sell orders. This resistance aligns with the weekly barrier at $16.48. If buyers fail to push LINK higher, a retracement might ensue, with substantial support anticipated around $14.62, a zone highlighted by the volume profile indicator and closely aligned with the 61.8% Fibonacci retracement level.
The recent approval of an Ethereum spot ETF has further bolstered bullish sentiment in the market. Should Chainlink find support near $14.62, it could initiate an 18% rally to retest the $17.58 order block. A decisive breach of this resistance could propel LINK to $22, marking a 50% gain, especially amid increased whale accumulation.
However, a weekly candlestick close below $13.59 would negate the bullish outlook, forming a lower low on a higher timeframe and potentially leading to a 13% decline toward critical support at $11.80.
In conclusion, Chainlink’s on-chain data and technical indicators strongly support a bullish outlook, provided it maintains key support levels. The quadrupling of active addresses signifies growing network demand, positioning LINK for a potential major rally, contingent on overcoming the crucial resistance at $17.58. Investors and traders should closely monitor these levels as Chainlink navigates this pivotal juncture.
