Chainlink’s token is closing in on a fresh yearly high, reaching $26 at last check on Sunday, driven by renewed investor momentum and growing adoption of its oracle network.
Summary
- Chainlink price resumed its strong bull run this month.
- The recently launched LINK reserves have continued rising.
- Technical analysis points to more gains, potentially to $30.
Chainlink (LINK) jumped by 123% from its lowest level this year.
LINK reserves are growing
Chainlink recently launched the LINK reserves feature that allows it to channel its on-chain and enterprise fees into it. Data compiled on its website shows that it now has 109,663 LINK tokens in its reserves.
Going by the current LINK price, these reserves are valued at over $2.7 million, a trend that will likely continue. The strategy has already been profitable as the average LINK cost basis was $19.65.
Chinlink’s total value secured on its platform has continued growing. The TVS has jumped to over $93 billion, with the majority of the funds being allocated to Ethereum’s network.
Chainlink has also continued inking partnerships with some of the biggest companies globally. Most recently, it announced a major collaboration with Intercontinental Exchange (ICE), the parent company of the New York Exchange.
The partnership will enable ICE to utilize Chainlink’s technology to power its forex and metals trading. This is just one example of how Chainlin’s cross-chain interoperability protocol is being utilized in the real-world asset tokenization industry.
Meanwhile, demand for the LINK token remains high. Its futures open interest rose to a record high of $1.5 billion, much higher than the year-to-date low of $421 million.
Whale accumulation has continued this month. These investors now hold 5.61 million LINK tokens, a 68% monthly increase. Whale buying is one of the most bullish catalysts for a token, as it indicates demand from investors who have a larger stake in the game.
Chainlink price technical analysis
The daily timeframe chart shows that the LINK price formed a double-bottom pattern at $10.97. This price formed the start of the first phase of the Elliot Wave pattern.
The token has now moved into the third phase, which is the most bullish. It has also formed a golden cross pattern as the 50-day and 200-day moving averages crossed each other.
The Relative Strength Index and the MACD indicators have continued to rise as bulls target the key resistance level at $27.18, its highest point since January this year. A move above that level will point to more gains to the psychological point at $30.
