A bullish technical pattern and growing network activity support LINK’s double-digit gain. On May 24, the price of Chainlink (LINK) increased by 7% despite a decline in the overall cryptocurrency market.

Since LINK’s price has increased by an astounding 30% in May, investors are wondering if there are still enough factors to support a climb above $20. The stock is currently trading at $17.04.

On-chain metrics reveal positive sentiment for the LINK price

On-chain indicators are showing a positive picture for LINK, with the price significantly outperforming other cryptocurrencies and hitting a six-week high of $17.50 on May 24, according to a May 24 X post by market research firm Santiment.

According to the data, LINK has the most advantageous ratio from December 8, 2022, with an 11 to 1 ratio of lucrative transactions to loss-making ones.

“Chainlink decouples from markets and reaches its highest profit level in 17 months, peaking at a 6-week high.”

Santiment’s additional data shows that since mid-May, activity has increased on the Chainlink network. The following data indicates that on May 22, there were $11,304 active addresses interacting with the Chainlink network, up from 3,159 on May 14. As for development activity, it has increased dramatically, with 436 unique GitHub repositories, up from 421 in mid-April.

Chainlink was identified by Sentiment as the network with the highest “notable daily development activity rates over the past 30 days” among the “top #ERC-20 related coins” in a post published on X on May 22.

“Traders anticipate new ETFs; Chainlink, Status, and Ethereum are the top developed ERC-20s in cryptocurrency.”

Growing network activity suggests a greater demand and value for LINK since it shows that more users are utilizing the Chainlink blockchain.

A strong technical setup backs the LINK price

The price of LINK rose 36% to reach a six-week high at $17.50 on May 24 after rebounding from a horizontal support line of a descending triangle around $13, according to data from Cointelegraph Markets Pro and TradingView.

During this upswing, the price broke free of the bearish triangle and turned important resistance levels into support. These levels included the $15 barrier, which was embraced by the 100-day exponential moving average (EMA) at $16 as well as the 50- and 200-day EMAs. On the downside, LINK has areas of strong support from these moving averages.

Furthermore, according to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, LINK had comparatively strong support on the downside in comparison to the resistance it encountered on the upside.

This suggested that LINK should follow the path of least resistance, which was upward.

As previously shown, independent trader Crypto Yapper recognized that LINK had broken out of a bearish triangle and commented that the price “looks bullish.” In a post published on the social media platform X on May 24, Yapper stated as much. He also added that the price was battling resistance at $17.5,0, which if broken, would convert into support.

“We can anticipate a retest to turn this resistance into support if we confirm the breakout.”

Chainlink’s price performance is something that fellow trader Mister Crypto is confident about, predicting that LINK will easily cross the $50 threshold once more during this bull run.

LINK is, in the opinion of Chainlink Red Pill, another X user, “vastly underpriced,” given its core value offer.

“Chainlink has the potential to make tokenization highly profitable for the largest financial institutions globally,” they declared, advising their more than 17,000 followers to seize the chance presented by LINK, which has the potential to grow up to 100 times its current value.

“I truly won’t be shocked if it goes 50–100 times faster from here. Most people will.

This opinion indicates the increasing optimism over the core value of Chainlink and its ability to propel substantial growth in the cryptocurrency sector.