Chainlink Sees Renewed Demand as Network Grows and Strong Hands Accumulate
Chainlink's network is showing renewed demand, with a significant increase in new addresses and $4.5 million in exchange outflows, suggesting accumulation by strong hands. Meanwhile, the S&P 500 index continues its rally, surpassing HSBC's 2025 target and heading towards a bull-case scenario of 7,000 points.
On October 1, Chainlink added 1,963 new addresses, indicating rising adoption and an expanding user base. This growth in my activity is supported by a steady improvement in the MVRV Z-score, reflecting a shift towards profitability among holders. The alignment of on-chain demand and technical structures suggests growing potential for a breakout and a possible next major pump for Chainlink.
Currently, Chainlink's price is consolidating within a bullish pennant flag, with clear boundaries between $20.9 and $23.1. A confirmed breakout from this pennant could allow Chainlink to challenge resistance at $25.2 and potentially extend to $27.8. The convergence of network expansion, bullish chart patterns, notable outflows, and improving MVRV suggests strengthening fundamentals for Chainlink.
With increasing network my activity, strong hands accumulating, and positive market momentum, Chainlink's prospects appear promising. The next major price movements could be influenced by a potential breakout from the current pennant, with resistance levels at $25.2 and $27.8.
