Why Chainlink Price Is Set For A Brief Pause Before $30 Rally

• The overhead selling pressure at $24.2 could push Chainlink price into a short-term correction. 
• LINK’s recent on-chain data shows a notable surge in whale transactions and active addresses.
• The recent breakout from the neckline resistance of the cup and handle pattern sets a potential recovery to the $30 psychological level.

LINK, the native cryptocurrency of the decentralized oracle network Chainlink, shows a narrow surge of 1.6% during Wednesday’s U.S. market hours. The intraday surge likely followed the broader bullish momentum in the altcoin market, spearheaded by Ethereum. The LINK price shows potential for a higher recovery, as whale transactions and active addresses have recorded a sharp uptrend.

However, the overhead supply at $24.2 could trigger a brief correction before the Chainlink price could resume its bullish trend.

Multiple Catalysts Bolster LINK Price For Prolonged Recovery

In the last two weeks, the Chainlink price showed a high-momentum rally from $15.43 to the current trading value of $23.8, registering a 54%. Subsequently, the asset market cap has bounced to $16.33 billion. 

 A notable contributor to this rally was the recent announcement of Chainlink’s partnership with ICE and the launch of the strategic LINK Reserve. The LINK price gained additional momentum amid the growing institutional interest, network activity, and broader bullish sentiment.

In a recent tweet, analytics platform Santiment highlighted that Chainlink is experiencing a strong surge in whale transactions (<100k), recently hitting a 7-month high of 4,663. This surge indicates that high-network investors are interacting with the LINK network.

Simultaneously, the number of active addresses has reached 6,463, the highest number in eight months, pointing to heightened user engagement and adoption.

In addition, the bullish narrative surrounding Chainlink has gained significant traction across social media platforms. The recent data shows 3.3 bullish comments per bearish comment on these platforms, which is the highest ratio in the last four months.

This uptick indicates a positive sentiment towards LINK for continued recovery amid its expanding network utility and broader bullish trend in the market.

The above metrics create a suitable base for this altcoin to drive a sustained recovery and a prolonged recovery trend.

LINK Price Poised For Brief Correction Before Next Leap

By the press time, the Chainlink price trades at $23.96, showcasing an intraday gain of 1.6%. Despite the intraday surge, the daily candle shows a long wick rejection candle, indicating the intense overhead supply at the $24.2 mark, which coincides with the R2 of traditional pivot levels.

The selling pressure currently stalls the LINK price recovery for a further push while increasing the potential for a bearish pullback. The momentum indicator ADX (Average Directional Index) bounced to 33.8%, indicating the buyers are nearing their exhaustion level, reinforcing the reversal potential.

Thus, the coin price could take a brief correction towards the $22.8 to $22.1 range and recoup its bullish momentum before the next leap.

The daily chart analysis shows that Chainlink price has recently breached the $20 neckline resistance of a traditional reversal pattern called Cup-and-Handle. The chart setup is characterized by a long U-shaped accumulation trend and a temporary pullback to stabilize the exhausted bullish momentum.

This technical support, along with the aforementioned on-chain activity, bolsters the Chainlink price for a quick rebound and continued recovery trend. If the pattern holds true, the altcoin could chase a bullish target of $30, indicating a potential surge of 26%.

Also Read: Ethereum Price Eyes Key Breakout as Fundamental Global Files $5B SEC Offering