Chainlink Price Forecast: Can LINK Outrun Bitcoin as Wallets Surge and Data Services Expand- Is $30 In Sight?

Chainlink price recently reclaimed the highs last recorded in late 2023 briefly surpassing the $26 mark but has since retreated to the current price of $24.65. Broad network participation has been observed in on-chain metrics such as wallet growth that have reached yearly highs. Meanwhile, Chainlink real-time Data Streams have grown to cover the traditional finance assets. But price currently faces a significant cluster of resistance that could influence its future trend.

Chainlink Price Action Shows Strong Structure Beneath $30 Resistance

The price of Chainlink has been on the rise in recent weeks after hitting lows of below $10 in April to highs of above $26. The price has developed a rounded cup shape with the neckline at around the demand zone of $26 to $30. 

Despite the correction to $24.65, the overall structure is still bullish with price above the 50-day EMA at $18.87. Should price consolidate at this level, it could be building a classic cup and handle pattern prior to an effort to breakout above resistance. 

It is worth noting that the demand zone was a critical rejection point in 2023 and can play a role in direction once more. But generally, the bullish formation improves the long-term Chainlink price outlook.

The ADX value of 35.57 indicates that the directional conviction is strong, which confirms the strong trend. In case of a slight correction, the 20 support-which was once resistance- can be a healthy retest point. The support structure here is prominent, as LINK has been consistently forming higher lows since June. 

Despite the rejection at the short-term level at $26, LINK has been strong enough to resist below previous swing levels. And even though rejection is a possibility at resistance, a clean break above $30 would create space to new annual highs, especially as LINK projects a long-term target of $52, as previously reported by CoinGape.

On-Chain Surge and Data Streams Growth Fuels LINK Pice Action

On-chain statistics indicate a tremendous increase in the activity of users, according to Santiment. More than 9,813 distinct LINK wallets made transactions on August 17 this year- the highest in 2021. On the following day 9,625 new wallets were created, which was also an annual record. 

The explosive increase in addressing activity is an indicator of growing network interest and participation by active users. Some of this could be based on speculation but, this type of wallet surge tends to be followed by more fortified positions in the market. 

In addition to the activity of its users, the Chainlink product offering is not stationary. The Data Streams of the network now serve real-time feeds on the equities and ETFs such as the AAPL, QQQ, and the NVDA. 

Chainlink also recently introduced the Chainlink Reserve, a strategic on-chain reserve mechanism that would aim to strengthen the utility of the tokens and overall network stability over the long-term. Combined with the on-chain growth, such upgrades demonstrate a deeper sense of faith and can contribute to the sustainability of the price direction of Chainlink.

To sum up, Chainlink is in a good position to break the $30 resistance provided the present conditions remain so. The cup formation, increased on-chain activity, and growing utility with Data Streams are all positive supporting further upside. A short consolidation around the $26 price level may form a handle before continuation. So long as bulls sustain pressure, a clean breakout above $30 remains highly likely.