Chainlink (LINK) Defies Market Downturn with 7% Increase: Bullish Outlook Prevails
Summary:
Chainlink (LINK) witnessed a 7% increase in its price on May 24, resulting in an impressive 30% rise throughout May despite a wider cryptocurrency market downturn. On-chain metrics indicate a bullish sentiment for LINK, and an increase in network activity suggests greater demand for it. Data indicates the least resistance for LINK is upwards. Several independent analysts have expressed bullish expectations for LINK's price in light of these data.
Despite the broader cryptocurrency market's slump, Chainlink (LINK) experienced a 7% boost in its price on May 24. With its current price standing at $17.04, LINK has witnessed a remarkable growth of 30% throughout May, leading investors to question the sustainability of a rally beyond $20.
Investigating the potential catalysts for a surge in LINK's price, on-chain metrics show encouraging signs for LINK’s price. As per a May 24 report by market intelligence firm, Santiment, LINK's impressive performance is being buoyed by bullish on-chain indicators, substantially outpacing other digital currencies and hitting a six-week peak of $17.50 on May 24. The data reveals that the proportion of profitable to unprofitable transactions for LINK is an optimistic 11 to 1, a ratio not seen since Dec. 8, 2022.
Supplementary data from Santiment discloses that engagement on the Chainlink network has seen a steady rise since mid-May. The number of daily active addresses interacting with Chainlink’s blockchain have grown from 3,159 on May 14 to 11,304 on May 22. Simultaneously, development activity has escalated from 421 distinct GitHub repositories in mid-April to 436 at present.
The increased network activity denotes an expanding user base for the Chainlink blockchain, suggesting enhanced demand and value for LINK.
Furthermore, a promising technical framework supports LINK's price. Data from Cointelegraph Markets Pro and TradingView indicate that LINK's price bounced back from a sliding triangle's support line at $13 on May 15. The 36% climb over the next nine days saw LINK's price peak at $17.50 on May 24.
Additionally, indicators such as the relative strength index (RSI) which rose from 36 to 65 within the said period, suggest that buyers are dominating the market, reinforcing the upward trend.
The In/Out of the Money Around Price (IOMAP) model from IntoTheBlock points out that LINK faced less resistance on its upwards journey compared to potential downwards pressure, suggesting that the path of least resistance for LINK is upwards.
Independent analysts Crypto Yapper and Mister Crypto have expressed bullish expectations for LINK’s price, highlighting the exit from the bearish triangle and potential to surpass the $50 milestone during this bull cycle respectively.
A user named Chainlink Red Pill has expressed that LINK, given its intrinsic value, is severely undervalued, propelling the sentiment of optimistic outlooks for Chainlink’s fundamental value and its potential to drive substantial growth in the cryptocurrency market.
Investments and trading decisions entail risks; therefore readers should base their decisions on thorough research.
Published At
5/25/2024 12:50:00 AM
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