Chainlink Eyes $20- Network Activity on the Rise While Strategic Partnerships Fuel the Momentum
Chainlink (LINK), the Oracle network powering dApps with secure off-chain data feeds, has been on a tear lately. The price rose over 30% in May, reaching a six-week high of $17.50 on May 24th. This bullish momentum has investors wondering if a break above $20 is forthcoming. Here is a look at the factors driving LINK’s price increase and what experts have to say about its future trajectory.
On-Chain Activity Points to Bullish Sentiment
Market intelligence firm Santiment reveals positive on-chain metrics for LINK. Here are some key takeaways.
- Profitable transactions dominate- The ratio of profitable LINK transactions to those incurring losses is at an 11:1 ratio, the highest since December 2022. This suggests strong investor confidence.
- Network activity on the rise- The number of daily active addresses on the Chainlink network has been steadily increasing, indicating growing user adoption.
- Development accelerates- The number of active GitHub repositories contributing to Chainlink has risen, highlighting ongoing development efforts.
These on-chain metrics indicate bullish sentiments, suggesting growing demand and value for LINK as more users engage with the network.
Strong Technical Indicators Support the Uptrend
Technical analysis on Cointelegraph Markets Pro and TradingView reveals a supportive technical setup for LINK. In mid-May, the price bounced off a key support level, breaking out of a bearish descending triangle pattern. This breakout usually indicates a shift in momentum towards an uptrend.
Meanwhile, the price overcame resistance levels at $13 and $15, which are now acting as support zones. This reinforces the uptrend’s strength. Moreover, both the 50-day and 200-day exponential moving averages (EMAs) are trending upwards, which indicates a positive long-term outlook. The RSI has climbed to 65, suggesting that buyers are firmly in control, pushing the price higher.
These technical indicators suggest that the uptrend for LINK has a strong basis and could continue in the near future.
Strategic Partnerships Drive Optimism
Chainlink Labs recently expanded its partnership with Arta TechFin, a Hong Kong-based financial services firm. This collaboration is intended to issue stablecoins and real estate tokens and will leverage Chainlink’s Oracle network to facilitate the tokenization of real-world assets like stablecoins and real estate.
The two companies will also collaborate on creating market standards for issuing, distributing, and managing tokenized assets across different blockchains.
This strategic partnership positions Chainlink at the forefront of the growing tokenization market, estimated to reach $16 trillion by the end of the decade. Industry experts believe this partnership could significantly boost LINK’s value proposition and drive further price appreciation.
Expert Opinions on LINK’s Future
Independent traders and analysts have expressed varying opinions on LINK’s future price movement. Crypto Yapper acknowledges the bullish breakout and expects a possible retest to solidify the new support level at $17.50. Similarly, Mister Crypto is confident in LINK exceeding $50 during the current Bull Run.
Another analyst, Chainlink Red Pill, believes LINK is undervalued and could experience a significant price increase in the long term. While these opinions vary, the overall sentiment leans towards continued bullishness for LINK.
Final Thoughts- Will LINK Hit $20?
While predicting the future of any cryptocurrency is essentially difficult, the confluence of positive on-chain activity, strong technical indicators, and strategic partnerships suggests a favorable outlook for LINK. If the current momentum continues, a break above $20 in the near future is a possibility. However, investors should conduct careful research and due diligence before making any investment decisions.
