u.today 
Even though Chainlink appears to be having trouble on the price chart, one of its most crucial network metrics indicates otherwise. The number of wallets with at least one $LINK has increased to over 535,000, the highest level since December 2022, according to new on-chain data from Santiment.
$LINK's rebound
As $LINK continues to trade close to multi-year lows in comparison to its prior cycle peaks, the milestone occurs at a time when it is getting harder to ignore the divergence between price performance and network growth.
Source: SantimentIncreasing wallet counts have traditionally been seen as an indication of accumulation rather than speculation. A steady increase in the number of holders indicates that more people are joining the ecosystem and retaining exposure to the asset over time, even though short-term traders regularly switch positions. When this trend occurs during times of market weakness, its significance increases even further.
$LINK remains under pressure from bears. The asset is still trading below its 50-, 100-, and 200-day moving averages after breaking below important support levels recently. After months of lower highs and lower lows, the price is currently hovering around $8, and the overall trend is still bearish.
Momentum indicators, however, indicate that selling pressure might be getting close to exhaustion. Following the most recent wave of liquidation, the Relative Strength Index has declined toward oversold territory, suggesting that bears may be losing control.
What distinguishes the current configuration is the fact that wallet growth has continued despite the decline. During periods of weakness, market participants seem to be steadily accumulating rather than giving up on the asset. Even though $LINK is trading far below the highs attained during prior market rallies, the number of non-micro wallets has risen to levels not seen in over three years.
What to expect next?
This kind of divergence has typically preceded stronger long-term performance, especially when broader market sentiment improves. Chainlink's standing in the cryptocurrency ecosystem is still solid. The network is still one of the leading providers of oracles, and it is also becoming more involved in tokenized assets, cross-chain infrastructure, and real-world asset applications.
These developments contribute to the explanation of why holder growth continues despite the disappointing price action. The bears still own the chart as of right now. However, $LINK's holder base has been steadily growing, indicating that long-term investors are looking beyond the current state of the market.
Chainlink's increasing network participation may lay the groundwork for a far more robust recovery than the current price chart indicates if cryptocurrency markets eventually return to a bullish environment.
