Chainlink (LINK) Price Surge: Can New Reserve Program Sustain Gains?
Chainlink (LINK) Bulls Gain Momentum: Will It Last?
Chainlink [LINK] has experienced a significant rally, prompting questions about the sustainability of its upward trajectory. A confluence of factors, including whale accumulation and a confirmed bullish breakout, suggests renewed investor confidence.
Key Takeaways
- Whale accumulation and a confirmed bullish breakout structure signal renewed investor confidence in LINK.
- Derivatives, large spot orders, and the Chainlink Reserve launch reinforce long-term bullish potential.
Whale Activity Fuels Optimism
Since early August, Chainlink [LINK] accumulation among whale wallets holding between 100K and 1M tokens has noticeably increased. A total of 27 new wallets have entered this tier, representing a 4.2% rise, and these wallets have collectively added 0.67% of LINK’s total supply.
This activity marks the most aggressive accumulation phase from large holders in recent months and coincides with LINK’s recovery past $18. At press time, LINK was trading at $19.34 after a 14.18% daily surge.
Technical Breakout Confirmed
Chainlink’s daily chart shows a breakout from a descending channel that has defined price action for several months. More importantly, LINK successfully retested the upper boundary of the channel as support, a textbook bullish confirmation.
The breakout was accompanied by rising volume and a Relative Strength Index (RSI) of 62.75, suggesting strong momentum with room to grow before hitting overbought levels. Immediate resistance lies at $27.10, while the $16.00 zone now acts as short-term support.
Derivatives Market Shows Strong Support
The derivatives market has shown strong support for LINK’s ongoing rally. Open Interest (OI) rose 26.97% to $1.06 billion, while Trading Volume jumped 271.10% to reach $2.70 billion. These sharp increases suggest that traders are entering leveraged positions at a rapid pace, reflecting rising confidence and expectations of continued upside.
Spot Market Data Reinforces Bullish Sentiment
Spot market behavior supports the on-chain accumulation narrative. The Spot Average Order Size indicator shows that recent trades are increasingly composed of large blocks, confirming whale activity. Combined with rising OI and a bullish chart structure, this surge in large spot orders strengthens the argument that LINK’s recent rally is built on real buying pressure.
Chainlink Reserve: A Potential Game-Changer?
The Chainlink Reserve, recently announced by Chainlink Labs, introduces a new mechanism to fund LINK purchases using protocol-generated revenue. This system leverages both on-chain and off-chain income streams to steadily accumulate LINK. Through Chainlink’s payment abstraction layer, the Reserve purchases tokens and locks them away, creating a deflationary feedback loop.
As adoption rises, revenue increases, fueling more LINK buys and reserve growth. This reduces circulating supply over time and provides a protocol-level source of demand. As a result, the Reserve could serve as a foundational support for LINK’s long-term price stability and appreciation.
Conclusion
The confluence of whale accumulation, confirmed technical breakout, rising leverage, and the Chainlink Reserve launch has created a compelling bull case for LINK. While short-term pullbacks are always possible, the current momentum and structural upgrades position LINK favorably. If the ecosystem continues to attract institutional flow, LINK may not just hold above $19—but set sights on reclaiming previous highs.