Chainlink has started to move up again after a hard few weeks. The project added more than eighty thousand LINK to its reserve in one day. This pushed the total to a little over one million fifty four thousand LINK. When a project builds its reserve it takes tokens out of the market. This shows trust in the future and it also means there is less supply for traders to sell.


This rise in reserves came at a time when the market was trying to recover. The extra support helps the price hold stronger lows. It also brings more calm during sudden drops. Many traders now see this as a sign that the project is getting stronger behind the scenes.


At the same time exchange reserves have been falling. The amount of LINK sitting on exchanges dropped by more than three percent. When fewer tokens are on exchanges it means fewer tokens are ready to be sold. This helps price move up with less trouble because sellers do not have as much control. LINK has shown in the past that it reacts well when supply becomes tight.


Buyers have also been active in the spot market. The taker buy data shows strong buying during dips over the last ninety days. This means people have been stepping in fast each time the price falls. This gives the price the energy needed for rebounds. It also lines up with the rise in reserves which makes the whole move look more natural.


On the price chart LINK bounced from the twelve dollar zone. It formed a double bottom which is a pattern that often marks the end of a fall. After the second bottom the price moved up with strength and started to retake lost levels. The next areas to watch are fourteen point nine three sixteen point six three and seventeen point six two. These will act as the next tests for buyers. The market must stay above thirteen point nine four if the move is to continue.


Leverage traders are also showing more trust. The funding rate turned positive which means people in long trades are willing to pay to keep their positions open. This often happens when traders expect the price to go higher. The funding is still small so the market is not overheated. This keeps things balanced and reduces the risk of a sudden flush.


All these signs together show that the market is turning in favor of LINK. The build up of reserves the drop in exchange supply the strong spot buying and the clear bounce on the chart all support a move toward higher levels. If the market stays stable above thirteen point nine four and funding stays firm the price could try to break through its next resistance zones soon.


Chainlink is now in a good position. The support behind the project is rising and the pressure from sellers is falling. Buyers are active and the chart looks cleaner than before. If this continues LINK could reach sixteen and even move beyond that in the coming days.

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