Following a bearish trend on the weekly chart, Chainlink [LINK] has once again shown signs of bullishness as indicated by the green daily chart. As a result, CryptoCrypto has delved into a detailed examination of the token’s on-chain data to determine its potential trajectory leading up to 2025.
Resurgence of Chainlink bulls!
According to data from CoinMarketCap, LINK experienced a 1.2% decrease in price over the past week. Nevertheless, the last 24 hours saw a resurgence of LINK bulls, driving the token’s value up by more than 2.5%.
Currently, Chainlink is being traded at $21.73 with a market capitalization exceeding $13.8 billion.
Following the recent price surge, a considerable number of 478k LINK addresses found themselves in a profitable position, which represents close to 68% of the overall Chainlink addresses, as reported by IntoTheBlock.
Despite the price surge in the last 24 hours, the token’s social metrics did not show a positive trend. Notably, LINK’s Weighted Sentiment experienced a significant decline, indicating a growing bearish sentiment.
Furthermore, Chainlink’s Social Volume witnessed a decrease last week, reflecting a decline in the token’s popularity.
Can LINK reach $50?
Amidst these developments, popular crypto analyst World Of Charts shared a tweet hinting that LINK is still within a favorable trading range, potentially targeting $50 in the near future.
Hence, CryptoCrypto examined additional datasets to evaluate the likelihood of LINK reaching this milestone in the medium term. Encouragingly, there was an observed increase in buying pressure on the token.
This increased buying pressure was evidenced by the rise in LINK’s supply outside of exchanges coupled with a decrease in its supply on exchanges.
Moreover, Chainlink’s exchange outflow experienced a notable spike on December 26th, indicating a surge in buying interest.
What lies ahead for LINK?
Nevertheless, at the time of reporting, Chainlink’s fear and greed index stood at 61%, suggesting that the market sentiment was leaning towards “greed.” Such instances typically imply the possibility of a price correction.
However, technical indicators pointed towards LINK’s price nearing the lower threshold of the Bollinger Bands, which could potentially trigger a bullish rally.
A further uptick in price could facilitate a reclamation of the $29 level before setting sights on $50.
Interestingly, following a decline, the Money Flow Index (MFI) also indicated a slight rise, potentially providing support for LINK’s journey towards $29.