Chainlink [LINK] has been rising throughout August.
Despite the volatility of Bitcoin [BTC], LINK bulls have performed relatively well, rising by 38.6% over the past 30 days.
On-chain heat accumulation
The bullish sentiment explains the increase in on-chain activity.
AMBCrypto discovered using Glassnode data that the number of new addresses has been on the rise since June. As of the time of writing, the number of new addresses is 2,163, roughly in line with November 2024.
Like the number of new addresses, the active address metric is also on the rise and is currently approaching the levels of November 2021.
Overall, network activity is an encouraging signal for long-term holders and investors.
At first glance, this also seems like a warning signal. However, if historical data repeats, then Chainlink's rebound may have a long way to go.
This does not mean a rebound is guaranteed, but it indicates the possibility.
Additionally, further increases in Bitcoin and Ethereum [ETH] may bring inflows to LINK.
What other signs indicate that Chainlink will appreciate?
The network value to transaction ratio compares the market cap of the asset to its daily trading volume.
A lower NVT value means that the asset is undervalued relative to its utility. The NVT signal adjusts this metric using a long-term (e.g., 90 days) moving average of daily trading volume.
LINK's NVTS is at the level it was in early November 2024, when LINK rose from 10.56 USD to 29.26 USD. In fact, this is one of the reasons why the case for Chainlink potentially rising further is plausible.
LINK chart receives support
To understand LINK's direction in the coming days, we looked at the 4-hour chart.
24.88 USD and 29.26 USD are key levels on the weekly chart, and also important support/resistance levels on the 4-hour chart.
As of the time of writing, Chainlink token trading is within an ascending channel (purple). The price has broken through the previous resistance level of 24.88 USD and is about to retest that support level.
Moving averages, momentum oscillators, and A/D indicators all support buyers. If the demand zone of 24.3 USD to 25 USD holds, a rebound to the channel's high is expected.
