Chainlink (LINK) is trading in the green around $18.50 on Friday after a strong 17% rally this week. The bullish momentum gained even more steam following the announcement of the “Chainlink Reserve” – a strategic reserve fund designed to accumulate LINK from enterprise integrations and on-chain service revenue.
Chainlink Launches Strategic LINK Reserve
On Thursday, Chainlink officially introduced the “Chainlink Reserve” – a reserve pool intended to collect LINK converted from payments for blockchain services and enterprise integrations. The announcement immediately triggered a nearly 11% price spike in LINK that day.
So far, the reserve has accumulated 65,500 LINK tokens, worth approximately $1.16 million.
“We do not expect any withdrawals from the Reserve for multiple years, and thus it is expected to grow over time,” Chainlink shared in a post on X.
The Reserve is powered by Payment Abstraction, an on-chain payment infrastructure that reduces friction by allowing users to pay in their preferred assets (e.g., gas tokens or stablecoins). These payments are then converted to LINK and stored in the Reserve.
This move is seen as long-term bullish for LINK, as reducing the circulating supply could drive up both demand and price.
In addition to the reserve announcement, Chainlink has been making a series of strategic moves. Earlier this week, Palladium Labs announced its adoption of the Chainlink data standard to secure its Bitcoin-backed stablecoin, PUSD. Moreover, Chainlink also launched real-time data streams for U.S. equities and ETFs – a major step forward in tokenizing real-world assets (RWA).
These developments underscore Chainlink’s expanding ecosystem, growing adoption, and increasing market confidence.
According to CoinGlass data, LINK’s open interest (OI) in derivatives rose from $825 million on Thursday to $1.07 billion on Friday – the highest level since February. A rising OI suggests new capital is entering the market, fueling the current price rally.
LINK Price Forecast: Bulls Target $22 and Beyond
LINK found support at the 50% Fibonacci retracement level of $15.61 last Sunday and has since rallied more than 13% through Thursday. On Friday, the uptrend continued, with price approaching weekly resistance at $18.81.
If LINK closes above the $18.81 level on the daily chart, it could pave the way for a move toward its February 3 high at $22.05. A decisive break above that could lead to further gains toward the next major resistance at $26.37.
The Relative Strength Index (RSI) is at 61 and rising, indicating strong bullish momentum. On the daily chart, the MACD lines are converging while the red histogram is fading, signaling weakening bearish pressure.
However, if LINK faces rejection at $18.81, the price may pull back toward the 50-day Exponential Moving Average (EMA) at $16.33.
