Chainlink skyrockets 57.6% in a month, but this one sign suggests caution…

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Key Takeaways

Ah, Chainlink, our glorious hero, rising like a phoenix from the ashes. But wait, a little red flag is waving in the background. While the short-term vibes are bullish, a falling retention rate might be that pesky cloud in the sky. Let’s hope it doesn’t rain on the parade! 🌧️📉

Chainlink [LINK] has been absolutely flexing in recent weeks. Since July 15th, LINK has climbed a staggering 57.6% in just over a month. Talk about gains! 🚀

During this period, Bitcoin [BTC] couldn’t even get its act together. It dipped to a pitiful $112k before crawling up to $124.5k. Meanwhile, Chainlink is out here flexing harder than a bodybuilder on pre-workout.

Chainlink’s strong performance came right alongside a bullish altcoin market, and the sentiment surrounding it was, unsurprisingly, extremely positive. 📈

Just 24 hours ago, LINK saw a 3% price gain and a 19.6% boost in Open Interest. Speculative traders, with their fingers crossed, were hoping this would be the start of something magical. ✨

The spot CVD is moving up, signaling growing demand. The Funding Rate’s positive trend matched the optimism-everyone’s feeling bullish. But beware, it’s not all sunshine and rainbows just yet…

While everything’s looking good in the short term, AMBCrypto did catch a little flicker of a cautionary signal. Who doesn’t love a plot twist? 📉

New demand and further LINK growth

Since July, the daily active addresses have shot up like a rocket. 🚀 Clearly, the network is attracting new users, which is great news-unless it’s just a temporary surge, like the hype around the latest viral TikTok trend.

But hold on a second! A huge spike can also mean that dormant holders are dusting off their wallets and cashing out. Could this be a sign of nervous sell-offs? The plot thickens! 💰

Now, the retention rate has been dropping, and that’s where things get a little sketchy. The drop from 24.5% to 17% since April? Yikes. It’s like the “new user” glow-up fading faster than a one-hit-wonder song on the charts. 🎶

The falling retention rate could indicate that these new users are just passing through, like tourists in a town they won’t remember. Long-term loyalty? Meh, not so much.

In fact, this dramatic rise in activity paired with a drop in retention is a classic recipe for a speculative bubble. Hope you’re ready for some turbulence! 💥

Compare that to earlier in 2025, when the daily active addresses were actually down, but retention was rising. That was a sign of a slow and steady user base, which is actually way more promising in the long term. 🐢

So, what’s next for Chainlink? Well, if it keeps this momentum, it might challenge the $30 mark in the coming weeks. But don’t get too comfy-Bitcoin and Ethereum’s performances will be key to this whole drama. Stay tuned. 🎬

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2025-08-18 16:53