Chainlink (LINK) is making headlines after a strong rally lifted the token to $17.85, marking an 8.24% daily gain and pushing its market cap past $12 billion.
The surge follows a string of high-impact developments, with investors now eyeing much higher targets as technicals and fundamentals align.
Strategic Shift: LINK Reserve System Goes Live
On August 7, Chainlink activated its new Reserve mechanism, a move that converts all protocol revenue—both on- and off-chain—into LINK tokens. Over $1 million worth of LINK has already been locked, with no plans for withdrawal in the foreseeable future.
This mechanism introduces constant buy pressure by absorbing supply and is designed to scale alongside network usage. With LINK’s circulating supply at 678 million, the Reserve is seen as a major step in aligning token scarcity with long-term ecosystem growth. The initiative also sends a strong signal to institutional players, showcasing confidence in Chainlink’s economic design.
Bridging Real-World Assets to Blockchains
Just days before the Reserve launch, Chainlink went live with tokenized U.S. equity and ETF data feeds across 37 blockchains. Early adopters include platforms like GMX and Kamino, signaling growing traction in the $10 trillion real-world asset market.
This expansion builds on Chainlink’s integration with Mastercard in June and cements its role in bringing traditional finance data into the Web3 world—positioning LINK as vital infrastructure far beyond DeFi.
Technical Setup: Cautiously Optimistic
LINK recently broke above the $17.55 level, which corresponds to the 38.2% Fibonacci retracement between its recent high ($20.24) and low ($13.21). This move also confirmed a double-bottom pattern, typically a bullish signal.
However, indicators remain mixed. The MACD is still in negative territory, while the RSI sits near neutral. The 24-hour turnover ratio of 4.85% shows strong liquidity, but sustained momentum may require confirmation via trading volume.
Analysts See $46 on the Horizon
According to crypto analyst Ali (@ali_charts), LINK’s trajectory remains intact as long as the $13 support level holds. A move above the $20.24 swing high could open the door to significantly higher levels, with $46 as a long-term target within the current channel structure.
Outlook: Bullish but Watch the Fed
LINK’s explosive growth stems from both on-chain innovation and its expanding role in real-world finance. Still, key technical levels such as the 200-day EMA near $15.84 must hold to keep momentum alive. Broader market sentiment, especially Bitcoin dominance and upcoming U.S. macroeconomic updates, will be critical to watch.
With Chainlink’s fundamentals strengthening and institutional appeal rising, the token is once again positioning itself at the center of the next wave of blockchain adoption.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/market/chainlink-price-surges-as-new-reserve-system-fuels-bullish-momentum/