After months of downward price pressure, Chainlink ($LINK) has entered a new bullish phase.
According to market analyst Van de Poppe, the asset, going through a continuous downtrend, is one of the top-performing assets in the crypto market in the event of the introduction of the Chainlink Treasury and Chainlink Reserve initiatives.
Looking at the market today, $LINK is currently trading at $24.3, with the technicals showing upward movements.
The daily Relative Strength Index (RSI) sits at 64, suggesting continued strength without being fully overbought. The main support levels on the daily chart are $20 and, on the 4-hour, $23.8.
Chainlink Reserve Boosts Long-Term Trust
Ten days back, it launched the Chainlink Reserve, an on-chain treasury intended to accumulate LINK tokens with off-chain profits.
This treasury is aimed at ensuring an enhanced, sustainable economy of the Chainlink Network that would anchor the Chainlink Network to long-term adoption.
The Reserve has already started to accumulate tokens with no intention to withdraw them in the next two years. The emphasis is rather on the gradual expansion of the treasury, as it will support the rise in demand for the platform’s services.
The alignment of the token accumulation treasury with the growing adoption by institutions and developers enables the Reserve to create a mechanism that may reduce supply pressure over time.
Adoption Across Capital Markets and Banking
As Chainlink oracle and data services have been adopted in more banks, capital markets, and developers, the ecosystem can further expand alongside the demand worldwide to have secure, decentralized data.
The positive sentiment indicates structural changes resulting from these economic initiatives.
Unlike previous years, the price surge seems to be based on solid fundamentals, with less of a disconnect between the token’s cost and the network’s utilization, and the supply of tokens is less of a factor.
Future Outlook
Currently, Chainlink has reestablished itself as one of the altcoins worth monitoring. The price level of about $20 offers a strong entry, and once it gets out of the range of more than 27, it will break through the resistance and may bring further profit to its long-term target range.
This positive change in direction is happening in a market where prices have varied significantly as reserves are being built up and demand is increasing, and since LINK is a key part of important infrastructure, it might be starting a more stable growth path in Web3.
