Chainlink [$LINK] has held up with decent strength despite the bearish conditions stacked against most assets, with the native token climbing 3.36% over the past day as sentiment strengthens.
Chainlink’s on-chain activity has weakened in recent days, yet the price continues to hold firm. AMBCrypto breaks down the factors that could help $LINK sustain its upward move, alongside the warning signs pointing to a possible decline.
Chainlink transactions and users drop sharply
At the protocol level, Chainlink is flashing concerning signals over whether the asset can keep pushing to the upside.
Artemis data points to a decline in both transaction count and user activity across the network over the past couple of days.
The transaction count fell steeply from 5.2 million to 386,600, marking its lowest level on a year-to-date basis.
The slide did not happen in isolation, as the total number of users contracted over the same window, sliding from 2,700 to just 1,000.
Declines of this nature often catch up with price—and $LINK, which has posted a decent upward surge, is no exception—since thinning protocol usage tends to undermine demand for the asset.
Chainlink bulls keep their grip on momentum
The bulls remain active in the market and have shown no real sign of surrendering their momentum.
The Accumulation/Distribution indicator, a volume-weighted tool used to track whether an asset is seeing net buying or net selling, points firmly to the former.
Accumulation has, in fact, been building for weeks and now sits at its highest level since 12 May, signalling a strong chance the price extends its climb from here.
Reinforcing the case for a sustained run is the Parabolic Stop and Reverse (SAR), which tracks whether buying or selling pressure controls the trend.
The Parabolic SAR reads clearly bullish, with its dots printing below price and implying the momentum sits firmly on the buy side.
The $8.69 level remains critical, and price needs to stay above it for the bullish momentum to hold, given this zone rejected $LINK on its last two attempts to break higher.
Chainlink still carries a downside risk
While the optimism from the bulls holds, $LINK still carries a non-negligible downside risk.
The liquidation heatmap reveals a dense cluster of unfilled liquidity sitting on the price chart.
These clusters act as a magnet and tend to pull price toward them, and when they form below the current level, they represent buy-side contracts waiting to be filled.
Nothing guarantees the price drops into this zone, yet it stays worth watching, especially when weighed against the protocol’s softening on-chain performance.
Such a move would amount to little more than a retracement, since the cluster sits around $8.1—and a dip into this zone could catalyse the next major upswing.