Chainlink Unveils Strategic Reserve to Fuel Long-Term LINK Accumulation

• Chainlink announces the launch of a strategic reserve of LINK tokens, funded by both off-chain enterprise payments and on-chain service revenue.
• The reserve has already accumulated over one million dollars’ worth of LINK during this early launch phase and plans not to sell them for several years.
• Chainlink price rides a long accumulation trend amid the formation of a cup and handle pattern.

LINK, the native cryptocurrency of the decentralized Oracle Network Chainlink, recorded a sharp upsurge of +10% to reach the current trading value of $18.3. While the buying pressure aligns with the broader market uptick, the coin price gained additional momentum as Chainlink unveiled a strategic reserve to buy back LINK tokens. Here’s how this news-driven rally is bolstering the asset for a bullish breakout from a key accumulation pattern.

Chainlink Launches Strategic Onchain Reserve as Enterprise Adoption Accelerates

On Thursday, August 7th, Chainlink announced the launch of a strategic reserve of LINK tokens, designed to support the long-term growth and sustainability of its network. The initiative plans to fund LINK token accumulation through off-chain revenues from large enterprises using Chainlink services, as well as on-chain service usage.

Chainlink will leverage payment abstraction methods to build its reserve, seamlessly converting off-chain and on-chain revenue streams into LINK tokens. This recently launched infrastructure layer allows clients to pay with their preferred form of choice (e.g., gas tokens and stablecoins), which are then programmatically converted to LINK.

“The launch of the Chainlink Reserve marks a pivotal evolution in Chainlink, establishing a strategic LINK reserve funded using off-chain revenue, as well as from onchain service usage. Demand for the Chainlink standard has already created hundreds of millions of dollars in revenue, substantially from large enterprises. The Chainlink Reserve provides a clear answer to how off-chain revenue and large-scale institutional adoption of the Chainlink standard will be connected back to the growth, security, and sustainability for those standards.” — Chainlink Co-Founder, Sergey Nazarov.

According to the press release, the Chainlink Reserve is already off to a strong start, as they have accumulated over $1 million worth of LINK during its early-stage launch phase. The reserve is expected to steadily grow in the coming months as more revenue will be converted to LINK tokens.

Importantly, Chainlink has no plans to withdraw from the Reserve for multiple years, showcasing its trust in the increasing demand for Chainlink’s unique capabilities.

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Chainlink Price Nearing A Major Breakout From Cup and Handle Pattern

The daily chart analysis of Chainlink price shows that the recent correction trend has found a suitable bottom support at $15.68. The resulting reversal pushed the price 20% up to currently trade at $18.5, restoring more than half of the loss it incurred during the correction.

With an internal gain of 10.3%, the coin price teases a bullish breakout from the key supply zone at $18. If the daily candle closes above this resistance, the buyers would gain sufficient support to drive another 10.5% jump to challenge the neckline resistance of the cup and handle pattern at $20.

Technically, the chart setup displays a long U-shaped accumulation trend followed by a temporary pullback to recuperate the exhausted bullish momentum. The recent correction in LINK price action rebounded from the 200-day Exponential Moving Average (EMA), a key technical level often seen as a healthy pullback zone in bullish trends.

Thus, a potential breakout from the $20 resistance will signal a major change in price trend, bolstering the Chainlink price for a 50% surge to hit the $30 psychological level.

LINK/USDT -1d Chart

On the contrary, if the sellers continue to defend the $20 resistance, the coin price could shift to a sideways trend until the price builds sufficient momentum for a breakout.

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