Chainlink Surges 38% in August, Echoes 2024 Rally

On-chain Activity Heats Up – A Signal of What’s Coming?

Data from Glassnode revealed that the number of new addresses (New Addresses) tied to LINK has been steadily climbing since June, reaching 2,163 – a level last seen in November 2024. Similarly, active addresses (Active Addresses) have also surged, nearing the historic peak recorded in November 2021.

This rising network activity not only reflects growing investor optimism but also serves as a bullish sign for long-term holders. While some may interpret it as a sign of overheating, history suggests that such conditions could be the early stages of a stronger rally.

Moreover, if Bitcoin and Ethereum (ETH) continue their upward momentum, capital inflows could further accelerate LINK’s growth.

NVT Signals Undervaluation of LINK

The Network Value to Transactions (NVT) ratio – a metric that compares market capitalization to daily transaction volume – indicates that LINK is currently trading in a low-value zone, similar to early November 2024, when its major uptrend began.

A low NVT typically suggests that an asset is undervalued relative to its utility. This adds weight to the argument that LINK still has significant upside potential.

Technical Outlook: Key Support in Focus

On the 4-hour timeframe, LINK is trading within a rising channel (purple), having recently broken past the crucial resistance at $24.88. The token is now retesting this level as support.

Technical indicators, including moving averages, the Awesome Oscillator, and the A/D line, all support a bullish bias. If the $24.3–$25 demand zone holds, LINK could rally toward the channel highs, with a potential retest of $29.26 – and possibly beyond.