Key takeaways
- LINK is the second-best performer among the top 20 coins, up 13.5% in the last 24 hours.
- The rally comes after Chainlink introduced the Chainlink Reserve.
The cryptocurrency market has turned bullish following days of bearish price action this week. Bitcoin hit the $117k level for the first time this week while Ether is targeting the $4k high once again.
LINK, the native coin of the Chainlink blockchain, is the second-best performer among the top 20 cryptocurrencies by market cap. The coin could rally higher as momentum indicators switch bullish.
Chainlink introduces the Chainlink Reserve
LINK is up 13.5% in the last 24 hours, outperforming other major cryptocurrencies in the top 20 except Stellar’s XLM. At press time, LINK is trading at $19.04 and looks set to hit a new weekly high if market conditions remain bullish.
The primary catalyst behind LINK’s rally is the launch of the Chainlink Reserve. Chainlink announced on Thursday that it has launched the Chainlink Reserve. This is a new upgrade centered on the creation of a strategic onchain reserve of LINK tokens.
According to Chainlink, the Chainlink Reserve is designed to support the long-term growth and sustainability of the Chainlink Network. It will achieve this by accumulating LINK tokens using offchain revenue from large enterprises that are adopting the Chainlink standard and from onchain service usage. The team added that the Chainlink Reserve is being built up by using Payment Abstraction to convert offchain and onchain revenue into LINK.
LINK could soar past the $20.5 resistance level soon
The LINK/USD 4-hour chart is extremely bullish thanks to Chainlink’s ongoing rally. The technical indicators have switched bullish. The efficiency also showed that LINK has swept liquidity to the downside and could be gearing up to soar higher.
The RSI of 76 shows that LINK is close to an overbought situation while the MACD lines are deep within the positive territory. The momentum indicators suggest that LINK is extremely bullish and could rally higher soon.
If the trend continues, LINK could soar past the July high of $20.3 over the next few hours. Surpassing the $20.3 resistance level could pave the way for LINK to retest the $27.266 high achieved in January.
However, if the broader market undergoes a correction, LINK could retest the resistance-turned-support region at $17.2. An extended bearish run would see LINK drop to the TLQ level at $16.103.
