Chainlink Price Hits 6-Week High, $20 Is LINK The Next Stop?
Chainlink's (LINK) price gained 7% on May 24, despite a decline in the broader crypto market.
Currently trading at $17.04, LINK posted an impressive 30% gain in May, prompting investors to question whether the drivers for a rally above $20 still exist.
Let's look at the factors that can increase the value of LINK.
Indicators on the chain show a positive feeling for the value of LINK
On-chain metrics are painting a bright picture for LINK, with its price outperforming other cryptocurrencies, reaching a six-week high of $17.50 on May 24, according to a May 24 report by market intelligence firm Sentiment.
The data shows that LINK's ratio of profitable trades to losers is 11 to 1, which represents the most favorable ratio since December 8, 2022.
“Chainlink Breaks Away from Markets and Hits 6-Week Gains at Highest Level in 17 Months.”
Additional data from Santiment shows that activity on the Chainlink network has been increasing since mid-May. As the chart below shows, daily active addresses with the Chainlink blockchain increased from $3,159 on May 14th to $11,304 on May 22nd. .
In a May 22 post on X, Sentiment listed Chainlink as the network with the most “popular daily development activity rates” among the “top #ERC-20 related coins” over the past 30 days.
“Chainlink, Status and Ethereum are the most advanced ERC-20s in crypto, with traders waiting for new ETFs.”
The increase in network activity shows that more people are using the Chainlink blockchain, indicating high demand and value for LINK.
A strong technical setup supports the price of LINK
According to data from Cointelegraph Markets Pro and TradingView, LINK price broke out of the horizontal support line of the descending triangle at $13 on May 15, rising 36% to a six-week high of $17.50 on May 24.
This improvement comes as the price escapes the bearish triangle and flips key resistance levels to support, the barrier at $15, both the 50-day and 200-day exponential moving averages (EMAs), and the 100-day EMA currently at $16. These moving averages provide strong support areas on the downside for LINK.
In addition, the relative strength index (RSI) rose from 36 to 65 during the same period. This indicates that buyers have controlled the price, reinforcing the strength of the rise.
Moreover, the In/Out of the Money Around Price (IOMAP) model from IntoTheBlock showed that LINK had relatively strong support compared to resistance on the upside.
This indicates that the path of least resistance for LINK is up.
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Traders expect further increase in LINK price.
Independent trader Crypto Yapper has acknowledged LINK's exit from a bearish triangle as previously reported, saying the price “looks aggressive.” Yaper revealed this on the X social platform on May 24, the price was fighting resistance at $ 17.5,0, if it is broken, it will turn into support.
“If we confirm the key, we can try again to turn this resistance into support.”
Associate Mr. Crypto expressed confidence in Chainlink's future price performance, noting that LINK will easily break above the $50 mark during this bull run.
Another X user believes that Chainlink Red Pill LINK is “very undervalued” considering its fundamental value proposition.
“ChainLink is going to make tokenization incredibly profitable for the world's largest financial entities,” he said, urging them to take advantage of the opportunity with LINK, as their over 17,000 flowers could multiply up to 100X from current levels.
“I really wouldn't be surprised if it goes 50-100x. Most will be.
This sentiment reflects the growing optimism surrounding Chainlink's fundamental value and potential for significant growth in the cryptocurrency market.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
