Chainlink (LINK) has recently demonstrated robust performance, recording significant gains and showing strong indicators across both on-chain metrics and technical analysis. Despite broader market volatility, LINK appears poised for continued appreciation, drawing attention from investors and long-term holders alike.
Surging On-Chain Activity Fuels Optimism
A closer look at Chainlink’s network reveals a healthy and growing ecosystem. New and Active Addresses have been consistently trending higher since June, with counts nearing levels last seen in November 2024 and 2021 respectively. This uptick in network participation is a heartening signal, often preceding periods of sustained growth. Reinforcing this bullish sentiment, Chainlink's Network Value to Transactions Signal (NVTS) has returned to levels last observed in early November 2024 – a period that marked the beginning of a substantial rally from $10.56 to $29.26. A low NVTS typically suggests that an asset is undervalued relative to its utility, hinting at considerable upside potential.
Technicals Point Towards Continued Upside
From a technical perspective, Chainlink's 4-hour chart paints an equally promising picture. The token is currently trading within a well-defined rising channel, having successfully climbed above and now retesting the $24.88 level, which previously acted as resistance, as new support. This retest is crucial for confirming the upward trajectory. Furthermore, key technical indicators such as moving averages, the Awesome Oscillator, and the A/D indicator all lend strong support to buyers. Should the critical $24.3–$25 demand zone hold firm, the path appears clear for LINK to rally towards the channel highs and potentially re-test the significant $29.26 resistance level. This positive momentum could be further amplified by gains in major cryptocurrencies like Bitcoin and Ethereum, which often funnel liquidity into altcoins.
