Chainlink’s Daily Active Users Soar 142%—Will Price Stabilize at $24 for a Rebound?

As daily active users go up 142%, bullish patterns are forming, and Chainlink (LINK) is eyeing $24 as a critical rebound area. Investor confidence is also reinforced by strong outflows from exchanges that suggest a breakout and continue uptrend.

LINK is currently trading at $22.49, down 14.04% over the last 24 hours, with a daily volume of $2.97B up 79.78%.

Its price ranged between $20.42 and $27.26, some 57.89% below its all-time high of $52.88 hit in May 2021. For a recovery and fresh bout of upward momentum, stabilization needs to stay around the $24 key support level.

LINK Price Set for Bullish Breakout: Ascending Triangle Formation

Recently, the price action for LINK trading pair is showing signs of a breakout into a bull trend, as regards to the daily chart.

We see an ascending triangle formation on the chart, usually indicative of an upcoming move upward. If resistance is broken, LINK looks like it could be on the verge of a big move up, which this technical pattern suggests is a result of LINK consolidating, with prices climbing once it breaks out.

LINK is consolidating closer to the important resistance level. Along with this consolidation, the volume is rising, showing strong buying interest that could interpret a breakout on the way.

These volume spikes, however, are also a strong sign that market participants are gearing up for a possible price surge, which further supports the bullish sentiment.

With the overall bullish sentiment of the market and the recent developments in Chainlink’s ecosystem, the breakout target for LINK points to price levels beyond $30.

These, along with the strong technical setting, suggest a good scenario for a possible rally. If there is a confirmation above the resistance level, the strength of the breakout will define the strength of the upward momentum.

Chainlink Sees Major Increase in Daily Active Addresses

Daily active addresses on Chainlink have been exploding. Rising 142% from last month to an average of 8,220 daily active addresses.

These sure turned out smart and quickly took off in the right way. Their price showing a clear spike leads to an indication of growing interest in the network of the Chainlink.

The rise illustrates the network’s growing use case in decentralised applications (DAPP) including the ever-growing field of decentralised finance (DeFi) and smart contract platforms.

Increasing active daily addresses indicate that more users are participating with Chainlink’s decentralized oracle services. It is necessary for feeding smart contracts and other blockchain-based applications data.

With more chains integrating Chainlink and the use of its Oracle technology becoming more widely adopted. It’s seeing increased participation from developers and users alike.

Equivalent to over 574% increase from Q1, this sharp surge in network engagement is a highly positive sign. It signals the growing adoption of Chainlink technology in the blockchain ecosystem.

This trend of activity rises fits within the general bullish sentiment in the market around Chainlink. In the past, higher engagement and adoption on the network have tended to be correlated with positive price momentum.

LINK Sees Strong Outflows, Signaling Investor Confidence

We can see some clear trends in Chainlink’s market behaviour using the LINK Spot Inflow/Outflow chart. It shows a clear pattern of strong outflows.

Data from December reflects increasing investor confidence as high amounts of LINK tokens are leaving exchanges.

This usually coincides with the accumulation. More investors prefer to store the LINK for the long term instead of selling, affirming the bullish cause.

The consistent decline over the past few months in net inflows has all but coincided with LINK’s noteworthy recovery in price.

If there indeed is a reduction in the supply of LINK tokens into exchanges due to the decline in sellers in that market, the selling pressure would be reduced, propelling the price higher.

This means, by contrast, that the more tokens available on exchanges, the more difficult it is for upward price movement as the only way they can go is down from here.

And with fewer tokens on exchanges, demand will start to outweigh supply, which increases the potential for upward price movement.

A relationship between decreasing net inflows and LINK price rise further confirms the increased optimism surrounding Chainlink.

Investors seem to be capitalizing on the recovery of the market and building up their positions. This happens are traders are seeing the future potential of Chainlink over the long run.