Chainlink (LINK) Jumps 12% Amid Buyback and Market Optimism
Chainlink (LINK) Rallies 12% Amid Token Buyback, Broader Crypto Rally
Chainlink's (LINK) native token experienced a significant rebound alongside the wider cryptocurrency market, spurred by Federal Reserve Chair Jerome Powell’s comments at Jackson Hole, Wyoming.
LINK rose by 12% in the last 24 hours, reaching $27.8, its highest level since December. Bitcoin (BTC) increased by 3.5% during the same timeframe, while the CoinDesk 20 index, a broad market indicator, climbed 6.5%.
Security Certifications Boost Confidence
Chainlink has recently achieved two important security certifications: ISO 27001 and a SOC 2 Type 1 attestation. This marks a milestone as a blockchain oracle platform. Conducted by Deloitte, the audits encompassed Chainlink’s price feeds, proof-of-reserve services, and the Cross-Chain Interoperability Protocol (CCIP).
Chainlink states that these certifications enhance trust in its data services and could drive greater adoption among banks, asset issuers, and decentralized finance (DeFi) protocols. For platforms looking to integrate secure oracle solutions, these certifications demonstrate Chainlink's commitment to robust security practices. Protocols seeking similar security assurances might consider a security audit provided by firms like Codeum to meet industry standards.
Token Buyback Supports Price
Adding further support to the rally, the Chainlink Reserve, which uses protocol revenues to periodically purchase LINK tokens on the open market, acquired 41,000 tokens on Thursday. This buy, worth approximately $1 million at the time, brought the Reserve's total holdings to 150,778 tokens, valued at around $4.1 million based on current prices.
Technical Analysis Highlights
- Support Levels: Strong support established at $24.15 with substantial volume confirmation.
- Resistance Penetration: Consistent movement past $25.00, $25.50, and $26.00 levels, backed by volume from institutional participants.
- Trading Volume: A significant surge in volume, reaching 12.84 million during the breakout phase, approximately five times the 24-hour average.
- Consolidation: Extended consolidation in a tight range around $24.70-$25.10 preceded the institutional-driven breakout.
- Momentum: Sustained upward trend supported by institutional accumulation signals.