Despite ongoing challenges in the cryptocurrency market, Chainlink has displayed a notable steady demand, particularly among retail investors. Recent data reveals that the number of standard-sized wallets holding at least one LINK token has surged to its highest level since December 2022, with 535,000 wallets reported, according to insights from Santiment.
This growth is particularly significant as it occurs in a market characterized by prolonged weakness, indicating continued user adoption of Chainlink despite the token trading well below its previous cycle highs. Historically, increases in wallet numbers have been linked with network adoption and asset accumulation. Such trends often entice other users to invest, potentially enhancing asset performance.
Further bolstering the positive outlook for Chainlink, the total number of holders has surged, reaching a year-to-date high of 879,000. This increase suggests strong network adoption across various market participants, reflecting confidence in Chainlink’s long-term value. Additionally, Chainlink’s active user base has shown impressive growth. The average number of active addresses over the past 30 days has climbed dramatically to around 570,000, a notable increase from just 50,000 in April. This amplified network participation signals the entry of new users, contributing to a robust ecosystem.
Amidst this backdrop of network growth, Chainlink’s token, $LINK, has also displayed signs of price recovery. After briefly falling below $7 to approximately $6.90, it rebounded to a local high of $8.10, and currently trades at around $7.90, reflecting a daily increase of 1.8%. Despite these modest gains, $LINK has faced a strong downtrend leading up to this point.
Technical indicators suggest that a bullish crossover in the Stochastic Momentum Index (SMI) has begun to take shape, having risen to -32, indicating a potential resurgence in bullish momentum. For this upward momentum to sustain, $LINK must first breach its short-term moving averages; currently, it is testing a 9-day moving average situated at $8.04. A successful retest and subsequent close above this threshold would confirm a strengthening demand and trend, setting the stage for further movement towards a short-term target of $8.7 and medium-term resistance at $9.
However, the SMI’s negative reading suggests that bullish pressure remains limited. Therefore, if the momentum does not maintain its trajectory, there is potential for $LINK to retreat below the $7 mark once more.
In summary, Chainlink’s network has surged in terms of wallet count, hitting impressive figures not seen since 2022, while $LINK displays slight bullish pressure, defending the $7 mark and rising towards $8, albeit with underlying momentum still appearing weak.
