Chainlink's Reserve Quietly Builds Case for $55 Rally

Chainlink's native token, LINK, has stabilized near $22.40, with analysts and investors closely watching for a potential breakout to $55. Despite a 37% rally in August, which positioned LINK among the top-performing major cryptocurrencies, the token has since retreated by approximately 15% from its peak of $27. This correction aligns with a broader pullback in the cryptocurrency market, as measured by the CoinDesk 20 Index. Technical indicators show that LINK is encountering resistance between $23.10 and $23.16, while a key support level has been established around $22.28–$22.32.

The recent decline comes despite significant developments, including the U.S. government partnering with Chainlink to publish economic data on the blockchain and Bitwise’s filing for a LINK-based exchange-traded fund (ETF). Additionally, the Chainlink Reserve, an on-chain mechanism that automatically buys and removes LINK tokens from circulation, has continued to accumulate tokens. As of September 4, 2025, the reserve has purchased 237,014 LINK tokens, valued at over $5.5 million, further reducing the token’s circulating supply. This initiative, which began in early August, has added 43,937 tokens to its holdings in the latest update, reinforcing Chainlink’s commitment to long-term network sustainability.

The reserve’s strategy is underpinned by revenue generated from both decentralized finance (DeFi) protocols and enterprise clients, such as Mastercard and UBS. These funds are converted into LINK and locked on-chain, creating a direct link between Chainlink’s real-world adoption and token value. The mechanism’s transparency, supported by a public dashboard, has further strengthened investor confidence by showcasing the growing pool of LINK tokens being removed from the market.

Looking ahead, the Chainlink Reserve could play a pivotal role in driving the token’s next bull run. By reducing circulating supply and aligning business growth with token accumulation, the reserve offers a structural tailwind that differentiates Chainlink from more speculative assets. Market observers note that LINK’s 39% surge over the past month, despite still trading at a 60% discount from its all-time high of $52.88, suggests a strong underlying narrative. Analysts speculate that continued reserve activity could position LINK to reclaim its previous highs and potentially surpass them, though such projections remain subject to broader market conditions.

Meanwhile, the token’s recent price action reflects a balance between bearish pressure and fundamental strength. Over the past 24 hours, LINK has traded within a relatively tight range, signaling a period of consolidation. With the broader crypto market entering a phase of uncertainty, the reserve’s impact on supply dynamics and investor sentiment could determine whether LINK transitions from a consolidation phase to a breakout rally. The market will be closely monitoring how the reserve continues to grow and whether the token can break through the $23.10 resistance level without succumbing to renewed bearish momentum.

Source: [1] Chainlink Price News: LINK Cools After August Gains as ... (https://www.coindesk.com/markets/2025/09/04/link-slides-15-from-august-peak-even-as-chainlink-reserve-removes-usd5-5m-from-circulation) [2] Chainlink Reserve Could Drive LINK's Next Bull Run (https://coingape.com/trending/why-the-chainlink-reserve-could-be-the-secret-tailwind-for-links-next-bull-run/) [3] Chainlink Reserve Tops 237K After Adding 43937 LINK ... (https://www.bitrue.com/blog/chainlink-reserve-237k-adds-43937-link-tokens) [4] LINK to EUR: Chainlink Price in Euro (https://www.coingecko.com/en/coins/chainlink/eur) [5] Chainlink Price, LINK Price, Live Charts, and Marketcap (https://www.coinbase.com/en-gb/price/chainlink) [6] LINK to ETH: Chainlink Price in Ether (https://www.coingecko.com/en/coins/chainlink/eth)