Chainlink (LINK) is showing signs of a potential breakout, even as the broader crypto market faces persistent weakness. The network’s non-micro wallets, which hold at least 1 LINK, have surged to 535,000 wallets. That’s the highest level since December 2022, according to data from Santiment.
This growth is particularly notable because it’s happening during an extended period of market weakness. LINK is trading significantly below its cycle highs, but users are still adopting the network. Historically, such sustained wallet increases have indicated network adoption and asset accumulation. It often encourages more users to join, boosting asset performance.
Network health looks strong
Beyond non-micro wallets, Chainlink’s total number of holders has also grown. It hit a year-to-date high of 879,000 holders at press time. This shows strong adoption across all types of market participants.
The network’s active addresses, measured over 30 days, now average around 570,000. That’s a massive jump from just 50,000 in April. It signals that new participants are entering the ecosystem. Higher wallet counts have historically been linked to stronger fundamentals and a healthy network. That’s often a recipe for stronger market performance.
What about LINK price?
Amid this network growth, LINK has also shown some recovery on price charts. After breaching $7 and then falling to $6.90, LINK rebounded to a local high of $8.10. As of now, it’s trading at $7.9, up 1.8% on the daily charts.
Before these slight gains, LINK had been on a strong downtrend. The Stochastic Momentum Index (SMI) has formed a bullish crossover and risen to -32. This suggests a recovery in bullish momentum. If demand holds, the altcoin might see more gains.
To confirm the uptrend, we need a jump above the negative zone. LINK is currently testing its short-term moving averages. The 9-day moving average sits at $8.04. A successful retest, followed by a close above it, would confirm a recovery in demand and trend strength. If that happens, LINK could target $8.7 in the short term, with $9 as medium-term resistance.
However, the SMI remains negative. That suggests bullish pressure is still minimal. If momentum fails to hold and retake the market, LINK could drop back below $7 again.
