Key takeaways
- LINK is the second-best performer among the top 20 coins, rising 13.5% in the past 24 hours.
- The rally follows Chainlink’s announcement of the Chainlink Reserve.
The cryptocurrency market has turned bullish after several days of downward pressure. Bitcoin briefly reached $117,000 this week, while Ether is again targeting the $4,000 level. Among major tokens, LINK—the native token of the Chainlink network—has stood out, posting strong gains and showing signs that further upside may follow as momentum indicators flip bullish.
Chainlink introduces the Chainlink Reserve
LINK climbed 13.5% in the last 24 hours, making it the second-best performer among the top 20 cryptocurrencies by market capitalization, behind Stellar (XLM). At the time of writing, LINK traded around $19.04 and appears positioned to challenge a new weekly high if bullish market conditions persist.
The primary catalyst for this move is Chainlink’s launch of the Chainlink Reserve. Chainlink announced the initiative on Thursday as a strategic on-chain reserve of LINK tokens. The Reserve is intended to support the long-term growth and sustainability of the Chainlink Network by accumulating LINK through a combination of on-chain service revenues and off-chain revenue streams from enterprises adopting Chainlink technology.
Chainlink explained that the Reserve will be funded using Payment Abstraction to convert both off-chain and on-chain revenue into LINK, creating a mechanism that recycles value back into the token supply to bolster the network’s ecosystem and long-term stability.
LINK could soar past the $20.5 resistance level soon
The LINK/USD 4-hour chart shows a strongly bullish structure amid the ongoing rally. Key technical indicators have shifted to bullish territory, and price action appears to have swept lower liquidity before reversing higher—an action often associated with continued upward momentum.
Momentum metrics reinforce the bullish outlook: the RSI near 76 signals strong buying pressure and approaches overbought levels, while MACD lines sit comfortably in positive territory. These readings indicate robust bullish sentiment and the potential for further gains in the near term.
Should the current trend continue, LINK could break above the recent weekly high of $20.30 and challenge the next significant resistance zone. A decisive breach of that level could open the path toward retesting January’s peak around $27.27.
Conversely, a broader market correction could pull LINK back to the prior resistance-turned-support area near $17.20. In a more pronounced downturn, LINK might test lower support around $16.10, where the trendline (TLQ) could provide a more substantial support level.
In summary, Chainlink’s Reserve announcement has been the main driver behind LINK’s recent outperformance, and technical indicators point to continued upside potential. Traders should watch key resistance and support levels closely, as broader market conditions will ultimately influence whether the token sustains its rally or gives back gains during a correction.