LINEA +67.65% 24-Hour Surge Driven by Liquidity and Network Activity

On OCT 6 2025, LINEA surged by 67.65% within 24 hours, reaching $1.1295. Over the past week, the token recorded a 189.19% gain, while climbing 539.56% in a month and 1820.65% over the past year. This sharp increase is attributed to a combination of improved on-chain liquidity, rising network activity, and a surge in cross-chain transactions.

LINEA’s performance has been underpinned by a 40% increase in daily active wallets over the last 30 days, according to on-chain analytics. The network has seen a notable uptick in cross-chain transactions, particularly on Ethereum and Arbitrum. This has been supported by recent upgrades to the LINEA bridge infrastructure, which reduced gas fees and improved throughput. Analysts project that the token’s continued integration into DeFi protocols will sustain its upward trajectory, assuming no regulatory interventions.

Technical indicators also suggest bullish momentum. The Relative Strength Index (RSI) has moved above 70, indicating potential overbought conditions, while the 50-day and 200-day moving averages have crossed into a positive divergence. The Moving Average Convergence Divergence (MACD) is in a strong positive territory, reinforcing the upward trend. These signals are commonly used by algorithmic trading strategies to gauge market sentiment and momentum.

Backtest Hypothesis

A hypothetical backtesting strategy was outlined, designed to simulate the performance of a trading approach based on the technical indicators mentioned. The strategy uses the 50-day and 200-day moving averages to generate buy signals when the 50-day crosses above the 200-day, and sell signals when the 50-day crosses below the 200-day. The RSI and MACD are used as confirmatory tools. The aim is to capture long-term bullish trends and exit positions during bearish divergence. This approach would be tested using historical data to evaluate its effectiveness in predicting and capitalizing on LINEA’s upward movement.