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Chainlink (LINK) has been one of the standout performers in August 2025, climbing more than 38% over the past month despite Bitcoin’s volatile trading environment. The rally has reignited investor interest, with many drawing comparisons to LINK’s strong performance in late 2024, when the token surged from $10.56 to $29.26 in just a matter of weeks.
With on-chain activity heating up and technical signals pointing toward continued strength, the big question for traders and investors is whether Chainlink can repeat history and extend its rally toward $30 and beyond.
Rising On-Chain Activity Fuels Optimism
One of the most promising aspects of LINK’s recent performance is the surge in network activity. Data from Glassnode shows that both New Addresses and Active Addresses have been trending higher since June.
At the time of writing, the number of new Chainlink addresses stood at over 2,100, levels not seen since November 2024. The increase in wallet creation suggests that fresh participants are entering the network, a sign often linked to the early stages of bullish momentum.
Similarly, the count of active addresses—wallets interacting with the blockchain on a daily basis—has also risen steadily. Active address growth reflects growing utility and network adoption, which supports higher valuations in the long run.
For long-term investors, this combination of fresh user inflow and rising participation is a strong foundation. Historically, such trends have preceded significant price advances.
The NVTS Signal Mirrors 2024 Rally Setup
Another key metric reinforcing the bullish outlook is the Network Value to Transactions (NVT) Signal. The NVT ratio measures the relationship between a cryptocurrency’s market capitalization and its transaction volume, while the NVT Signal smooths this data with a long-term moving average.
Currently, LINK’s NVTS has dropped to levels not seen since November 2024. That period was followed by a powerful rally where LINK nearly tripled in value in less than two months.
A low NVTS reading suggests that LINK may be undervalued relative to its actual usage. This aligns with the observed uptick in address activity, reinforcing the view that Chainlink could have further upside ahead.
Technical Outlook: Bulls Eye $29
From a charting perspective, LINK is positioned strongly. On the 4-hour timeframe, the token is trading inside a rising channel, reflecting sustained buying interest.
Two horizontal levels stand out:
$24.88 – a key support zone that LINK recently flipped after breaking resistance.
$29.26 – the next major resistance, aligning with the 2024 peak and a psychological barrier for traders.
At press time, LINK was holding above the $24.3–$25 demand zone. If bulls can defend this level, the probability of a rally toward $29 looks favorable.
Momentum indicators further back this outlook:
The Awesome Oscillator (AO) shows continued bullish momentum.
The Accumulation/Distribution (A/D) indicator signals steady buying pressure.
Moving averages on the 4-hour chart are aligned in favor of the bulls.
If these technical conditions persist, Chainlink could retest the upper boundary of its rising channel, potentially breaking above $29 to enter a new expansion phase.
Broader Market Tailwinds Could Support LINK
While Chainlink’s fundamentals and technicals are strong, broader market conditions will also play a role. Both Bitcoin (BTC) and Ethereum (ETH) remain influential drivers of liquidity across the crypto market.
If Bitcoin manages to stabilize above key support levels and Ethereum continues to attract inflows, capital rotation into altcoins like LINK could accelerate. Historically, periods of BTC consolidation have often fueled altcoin rallies as traders seek higher returns.
Moreover, Chainlink’s role as a leading oracle provider makes it a critical part of the decentralized finance (DeFi) ecosystem. With renewed interest in real-world asset tokenization and growing demand for secure price feeds, LINK could benefit from sector-wide tailwinds.
Risks to Watch
Despite the bullish setup, investors should remain cautious. Several factors could derail LINK’s rally:
Bitcoin Volatility: A sharp downturn in BTC could trigger broad-based selling across altcoins, including LINK.
Resistance at $29.26: If LINK fails to break above this level, the rally could stall and trigger profit-taking.
Overheating Metrics: While address growth is encouraging, if it rises too quickly without sustained transaction growth, it may indicate speculative activity rather than long-term adoption.
These risks highlight the importance of risk management for traders positioning themselves in LINK during this rally.
Conclusion: Can History Repeat?
Chainlink’s 38% rally in August has captured market attention, with strong similarities to its late-2024 breakout. Rising network activity, favorable on-chain metrics like the NVTS, and bullish technical signals all point toward the possibility of further upside.
If LINK can hold above the $24–$25 support range, the path toward $29 and potentially higher looks increasingly likely. However, external market conditions—particularly Bitcoin’s direction—will remain a key influence.
For now, Chainlink appears to be at the start of another significant bullish phase, and investors will be watching closely to see if history repeats itself.
