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Highlights
- Chainlink profit/loss transactions currently dominate with 11:1 ratio hinting bullish momentum.
- The LINK price breakout above $17.58 can trigger additional rally to $22.
- The total number of Chainlink active addresses have surged by a staggering 4x last week.
Oracle service provider Chainlink has decoupled majorly from the broader market correction with more than 6% in the last 24 hours. As of press time, the Chainlink (LINK) price is trading closer to its crucial resistance of $17.5 with its market cap crossing $10.1 billion. Moreover, the daily trading volume for LINK has also surged by 80% moving all the way to $858 million.
Chainlink On-Chain Data Flashes Bullish Signal
According to insights from on-chain data provider Santiment, Chainlink (LINK) has emerged as a standout performer within the cryptocurrency market, surging past 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 at a loss, there are 11 transactions showing a profit. This remarkable ratio marks the highest level observed since December 8, 2022, suggesting a strong bullish sentiment surrounding Chainlink’s recent price movements.
This Breakout Can Trigger Major Surge for LINK Price
The current Chainlink price is encountering resistance attributed to a daily bearish order block, where significant market participants have historically placed sell orders at $17.58.
This resistance level coincides with the weekly resistance barrier at $16.48. Failure of buyers to drive the LINK price higher could potentially trigger a retracement. In such an event, analysis from the volume profile indicator suggests that a significant volume of trades occurred around $14.62, indicating potential support for the anticipated correction.
Notably, this level closely aligns with the 61.8% Fibonacci retracement level, presenting an attractive accumulation zone for a potential second bullish leg.
The recent surge in bullish sentiment following the approval of an Ethereum spot ETF has heightened optimism. Should Chainlink find support around $14.62, it could signal an 18% rally to retest the $17.58 daily order block. In a highly optimistic scenario, a successful breach of this resistance level could propel the Chainlink price to $22, marking a total gain of 50%, amid Chainlink whale accumulation.
Even with robust technical analysis and on-chain data supporting Chainlink’s potential, a weekly candlestick close below $13.59 would negate the bullish outlook by forming a lower low on a higher timeframe. Such a scenario could result in a 13% decline in LINK price, potentially leading it towards a critical support level at $11.80.
Additionally, the on-chain data also shows improvement for Chainlink. There has been a significant surge in the number of active addresses within the Chainlink network, rising from 2,900 on May 18 to 11,300 on May 21. This notable increase indicates a growing demand for the Chainlink platform.
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