High trade volumes aided LINK's recent upward momentum, as day traders rejoiced in short-term gains.
LINK holders may suffer short-term losses if market momentum turns negative.
Global crypto market cap briefly regained positive momentum.
The market was in a frenzy, with sharp lows and highs keeping traders bonded to their screens. Despite the broader bearish narrative, Chainlink's price has made some advances in the right direction.
The LINK price finally broke free from the bearish momentum that had been afflicting the token and reclaimed the $6 mark. At the time of writing, LINK was trading at $6.38, up 14.23% in the past 24 hours.
Observing the Chainlink price breakout
High trade volumes aided LINK's recent upward momentum, as day traders rejoiced in short-term gains. The 24-hour trade volume of LINK increased in tandem with the price, which reached $504.26 million after increasing by 67.64% in the past day.
LINK stood out in a bear market because its price increased on Monday, despite Bitcoin and Ethereum prices falling. The bigger story, as per reports, was that the LINK experienced a sudden active address surge that began around the time of the FTX fallout.
The increase in active addresses following the market fall is most likely due to sellers in the market. However, the active address increase maintained a higher level, remaining at one-year high levels. After reaching a high of 8174 on November 10, active addresses experienced a 50% drop but remained above average.
Despite the increase in active addresses, LINK holders may suffer short-term losses if market momentum turns negative.
Rising deposits spell trouble for Chainlink
On November 22, active deposits for LINK nearly doubled from the previous day. A rise in active deposits combined with a decrease in active addresses usually results in a bearish price reaction.
Another negative trend afflicting LINK was a decline in network growth. Meanwhile, despite the increase in MVRV 365 days, it was still trading in negative territory.
One of the primary reasons for the recent increase in the LINK price could be the announcement of the upcoming release of Chainlink Staking v0.1.
Going forward, LINK bulls must keep the price above the $6.31 level to sustain its bullish momentum.
Read also: CZ Requested Help From These Investors
