Chainlink on-chain data flashes signs of growth as the number of active addresses within the Chainlink network has increased from 2,900 on May 18 to 11,300 on May 21. LINK costs $22.
Oracle service provider Chainlink has largely decoupled from the broader market correction, up more than 6% in the past 24 hours.
As of press time, Chainlink (LINK) is trading near its key resistance of $17.5 and its market cap has surpassed $10.1 billion. Additionally, the daily trading volume for LINK has also increased by 80% to $858 million.
Chainlink On-Chain Data Flashes Bullish Signal
According to insights from on-chain data provider Santiment, Chainlink (LINK) has emerged as one of the top performers in the cryptocurrency market, crossing the $17.50 mark for the first time in six weeks.
Today’s on-chain analysis reveals a striking trend: for every one Chainlink transaction recorded in a loss, there are 11 transactions showing a profit. This remarkable ratio marks the highest level observed since December 8, 2022, indicating a strong bullish sentiment around Chainlink’s recent price movements.
This Breakout Can Trigger Major Surge for LINK Price
The current Chainlink price is facing resistance due to the daily bearish order block, where key market participants have historically placed sell orders at $17.58.
This resistance level coincides with the weekly resistance barrier at $16.48. A failure by buyers to push LINK’s price higher could potentially trigger a pullback. In such a case, an analysis of the Volume Profile indicator shows that a significant volume of trade has taken place around $14.62, indicating a possible support for the expected correction.
Notably, this level closely aligns with the 61.8% Fibonacci retracement level, offering an attractive accumulation zone for a possible second bullish leg.
A recent surge in bullish sentiment following the approval of the Ethereum Spot ETF has fueled optimism. If Chainlink finds support near $14.62, it could signal an 18% rally to retest the $17.58 daily order block.
In an extremely optimistic scenario, a successful breach of this resistance level could push the price of Chainlink to $22, marking a cumulative gain of 50%, amid the Chainlink Wheel rally.
Even with strong technical analysis and on-chain data supporting Chainlink’s potential, a weekly candlestick below $13.59 would negate the bullish outlook by forming a low on a higher time frame.
Such a scenario could result in a 13% drop in LINK’s price, potentially leading it to a key support level at $11.80.
Additionally, on-chain data also shows improvements for Chainlink. The number of active addresses within the Chainlink network has grown significantly, increasing from 2,900 on May 18 to 11,300 on May 21. This remarkable increase indicates the growing demand for the Chainlink platform.
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