Despite a broader downturn in the cryptocurrency market, Chainlink (LINK) has experienced a remarkable 7% gain on May 24, propelling its price to $17.04 and marking a 30% increase for the month. As investors speculate on the potential for a rally above $20, several factors are driving optimism surrounding LINK's performance.

According to insights shared by market intelligence firm Santiment on May 24, on-chain metrics paint a bullish picture for LINK. The coin has notably outperformed other cryptocurrencies, reaching a six-week high of $17.50. Notably, the ratio of profitable transactions to loss-making ones for LINK stands at an impressive 11 to 1, marking the most favorable ratio since December 8, 2022.

Further analysis from Santiment underscores increasing activity on the Chainlink network, with a surge in daily active addresses and development activity. This uptick in network engagement suggests growing demand and value for LINK, bolstering investor confidence in its upward trajectory.

Technical indicators also signal bullish momentum for LINK. The coin bounced off a horizontal support line of a descending triangle at $13 on May 15, rallying 36% to reach the six-week high of $17.50 on May 24. Importantly, LINK managed to break out of the bearish triangle and flip key resistance levels into support, including the barrier at $15. Additionally, LINK finds strong support from various moving averages, reinforcing its position on the upside.

The relative strength index (RSI) has surged from 36 to 65 over the same period, indicating buyers' control of the price and strengthening the uptrend. Moreover, the In/Out of the Money Around Price (IOMAP) model from IntoTheBlock suggests strong support for LINK on the downside, implying that the path of least resistance for the coin is on the upside.

Echoing this sentiment, independent traders on the X social platform express confidence in LINK's future performance. Crypto Yapper notes LINK's bullish breakout from the bearish triangle and anticipates a retest of $17.50 as a support level if the breakout is confirmed. Fellow trader Mister Crypto predicts LINK's surge beyond the $50 mark during the ongoing bull run.

Furthermore, sentiment among X users reflects growing optimism regarding Chainlink's fundamental value proposition. Chainlink Red Pill believes LINK is "vastly underpriced" considering its potential to make tokenization highly profitable for major financial entities worldwide, potentially multiplying its value by as much as 100x from current levels.

As Chainlink continues to demonstrate resilience and upward momentum, investors eagerly await whether it will reach the coveted milestone of $20 and beyond, driven by both technical indicators and fundamental factors.