Chainlink (LINK) Price: Can It Reach $30 Amid Wallet Surge?
Chainlink (LINK) recently tested highs last seen in late 2023, briefly exceeding $26 before settling at $24.65. On-chain metrics reveal strong network participation, with wallet growth reaching yearly peaks. Chainlink's real-time Data Streams are also expanding to cover traditional finance assets. However, LINK faces significant resistance that could influence its short-term trajectory.
Chainlink Price Action: Bullish Setup Below $30
LINK's price has surged in recent weeks, recovering from lows below $10 in April to over $26. This price action has formed a rounded cup shape, with the neckline around the $26-$30 demand zone.
Despite the recent correction to $24.65, the overall structure remains bullish, with the price above the 50-day EMA at $18.87. Consolidation at this level could lead to a classic cup and handle pattern, setting the stage for a breakout above resistance.
The $26-$30 demand zone acted as a major rejection point in 2023 and could influence future direction. However, the current bullish formation improves the long-term outlook for Chainlink's price.
Key Indicators Point to Strength
- ADX: A value of 35.57 indicates a strong directional trend.
- Support: The $20 level, previously resistance, could serve as a healthy retest point.
- Higher Lows: LINK has consistently formed higher lows since June, indicating strong support.
While a rejection at the $26 level is possible, LINK has shown resilience above previous swing levels. A clean break above $30 would pave the way for new annual highs, with some analysts projecting a long-term target of $52.
On-Chain Activity and Data Stream Expansion
On-chain data indicates a significant increase in user activity. According to Santiment, over 9,813 unique LINK wallets made transactions on August 17—the highest number since 2021. The following day saw the creation of 9,625 new wallets, also a yearly record.
This surge in addressing activity suggests growing network interest and participation. While speculation may play a role, this type of wallet growth often precedes more fortified market positions.
Chainlink's product offerings are also expanding. The network's Data Streams now provide real-time feeds for equities and ETFs, including AAPL, QQQ, and NVDA. This expansion into traditional finance enhances Chainlink's utility and value proposition.
Chainlink recently introduced the Chainlink Reserve, an on-chain mechanism designed to strengthen token utility and network stability over the long term. These upgrades, combined with on-chain growth, demonstrate increasing confidence and can contribute to the sustainability of Chainlink's price trajectory.
In summary, Chainlink is well-positioned to break the $30 resistance if current conditions persist. The cup formation, increased on-chain activity, and expanding Data Streams are all positive factors supporting further upside. A short consolidation around the $26 level could form a handle before the next leg up. As long as bulls maintain pressure, a clean breakout above $30 remains a strong possibility.
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