Chainlink adds 78,000 LINK to reserves: A signal for a bullish reversal?

The cryptocurrency market is going through a stagnant period, and the price of Chainlink (LINK) is no exception at the time of writing.

However, LINK still shows positive signals in other aspects — from the lively social sentiment, significant increases in reserve funds, to the strong expansion rate of tokenization activities on the oracle platform.

The volume of social discussion has reached its highest level in three years

The Social Volume index of LINK has surged to 356 – the highest level in three years – right at the time when the price of this token fell to its lowest since August 4. Concurrently, the Weighted Sentiment also reached 3,307, reflecting a rare bullish sentiment in the community.

Although the data shows optimism, several investors warn that this could just be a “psychological trap” to attract new capital. On the contrary, some others believe that the current accumulation phase is the stepping stone for the next growth cycle of LINK.

Typically, the level of lively discussion on social media often accompanies price increases. However, this time a price divergence has appeared - a phenomenon that indicates market sentiment and price are moving in opposite directions, often signaling the potential for a trend reversal.

Source: Ali Charts/XIn this context, many signals indicate that “smart money” is quietly accumulating, while most retail investors remain on the sidelines observing. This development makes the outlook for LINK very promising, especially as the price is still below the 15 USD threshold – a level that previously served as a springboard for this token to reach 27 USD.

Chainlink reserves surge amid tokenization wave

Organizations are increasingly showing strong interest in Chainlink tokens as they implement tokenization activities on the oracle platform. Recently, Securitize integrated Chainlink's data standard to price funds used as collateral on Aave Horizon.

Aave Horizon – the platform powered by Chainlink NAVLink – has now surpassed 450 million USD in total value locked, reinforcing Chainlink's important intermediary role in connecting traditional finance (TradFi) and decentralized finance (DeFi).

Alongside the rapidly spreading wave of tokenization, Chainlink's reserve account has also recorded impressive growth. Over the past week, the fund has added 78,250 LINK tokens, equivalent to 1.1 million USD, marking the largest purchase since its establishment.

Source: Chainlink ReserveAs of the time of writing, Chainlink's reserves have reached 729,338 LINK, worth 10.8 million USD, with an average purchase price of 20.49 USD/token – reflecting the growing confidence of institutions in Chainlink's central role in the global tokenization ecosystem.

Are these positive signals enough to reverse the price of LINK?

On the daily timeframe, LINK has reclaimed the important support zone at the 15.5 USD mark — an area that marked the beginning of a strong price surge in early August.

Notably, the RSI indicator has formed a bullish divergence and recovered to the level of 41.78, reflecting that selling pressure is gradually weakening.

Source: TradingViewHowever, to confirm that the downtrend has truly ended, LINK needs to surpass the nearest local peak around 17.7 USD. At that point, the price could head towards the important resistance level at 23.5 USD.

On the contrary, if the closing price falls below 15.5 USD, the recovery scenario will be denied, and the next notable support zone is at 12.8 USD.

SN_Nour