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Chainlink’s native token, LINK, is back in the limelight after a strong price recovery coincided with a major protocol upgrade.
The decentralised oracle network has launched a strategic on-chain reserve system that converts protocol revenue into LINK tokens to support long-term growth.
This development has injected renewed bullish momentum into LINK, driving investor optimism and pushing the token’s price higher.
Notably, the move comes as Chainlink continues expanding its footprint across traditional finance, decentralised finance (DeFi), and real-world asset tokenisation.
New Chainlink reserve system sparks fresh demand for LINK
On August 7, Chainlink officially rolled out the Chainlink Reserve, a mechanism that programmatically converts both on-chain service revenue and off-chain enterprise payments into LINK tokens.
We’re excited to announce the launch of the Chainlink Reserve, a new upgrade centered on the creation of a strategic onchain reserve of LINK tokens. blog.chain.link/chainlink-rese… The Chainlink Reserve is designed to support the long-term growth and sustainability of the Chainlink
According to the team, over $1 million in LINK has already been added to the reserve, with no plans for withdrawals in the foreseeable future.
By locking up protocol revenue in LINK rather than dispersing it, the reserve introduces consistent buy-side pressure into the market.
This mechanism is expected to scale alongside demand for Chainlink’s services.
As more enterprise clients and DeFi protocols integrate the Chainlink standard, the amount of revenue converted into LINK should continue to increase.
What makes this initiative particularly significant is that it creates a clear feedback loop between real-world usage and token demand.
Institutions pay in stablecoins or fiat, but through Chainlink’s payment abstraction system, these payments are converted into LINK via decentralised exchanges.
This structure not only strengthens token utility but also reinforces LINK’s role as a core asset in the Chainlink ecosystem.
Technical analysis shows potential for major upside
Alongside the launch of the reserve, LINK’s market price has responded with a sharp rebound.
The token climbed to $17.85, marking an 8.24% gain in a single day and lifting its market capitalisation above $12 billion.
Over the past month, LINK has surged more than 31%, showing renewed strength after a period of consolidation.
Technical analysts, including popular figure Ali Martinez, have pointed out that LINK’s bullish setup remains intact as long as it stays above the $13 support level.
According to Ali, a sustained hold above this threshold could pave the way for a rally toward $46.
The chart reflects a clear upward trend with higher lows forming and a recent breakout above the $17.55 level, confirming a double-bottom reversal.
Chainlink $LINK still has a clear path to $46 as long as the $13 support level holds strong.
Meanwhile, several key indicators support the bullish case. The MACD has begun to recover, the ADX shows a strengthening trend, and all major moving averages — from the 20-day to the 200-day — are flashing “buy” signals.
Although the Relative Strength Index (RSI) remains neutral, liquidity is high, and the price has broken important resistance levels, giving traders more confidence in the move.
Real-world integrations add fuel to the fire
Chainlink’s momentum is not purely technical. The project has made significant progress on the adoption front, especially in the real-world asset (RWA) sector.
Just days before the reserve launch, Chainlink activated tokenised US equity and ETF data feeds across 37 blockchains.
Platforms like GMX and Kamino are already integrating these feeds, reinforcing Chainlink’s role as the go-to infrastructure provider for traditional finance data in the Web3 ecosystem.
This expansion builds on earlier partnerships with major institutions like Mastercard, Swift, Euroclear, and UBS.
Chainlink’s influence now spans decentralised lending, institutional settlements, cross-chain applications, and tokenised markets.
These developments have created hundreds of millions of dollars in revenue, a substantial portion of which has come from off-chain enterprise clients.
With these payments now funnelled into the Chainlink Reserve, the protocol is closing the loop between institutional demand and token value accrual.
Chainlink price Outlook remains bullish
While the fundamentals and technicals align in favour of further gains, broader market conditions still matter.
Market analysis by the likes of CoinLore cautions that LINK must hold above its 200-day EMA, which currently sits near $15.35, to keep the uptrend alive.
In addition, traders should monitor US macroeconomic updates and Bitcoin’s dominance in the crypto market, both of which could influence sentiment.
Nonetheless, with the reserve system now operational, real-world adoption accelerating, and technicals improving, Chainlink appears well-positioned for the next phase of growth.
As long as demand for decentralised data infrastructure rises, LINK could continue to climb — potentially turning today’s rally into the beginning of a much larger breakout.
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