Chainlink (LINK) is poised for a sustainable bullish trend - Supporting factors.

Since the beginning of August, Chainlink whale wallets (LINK) holding from 100,000 to 1 million tokens have accelerated their Accumulation at an impressive scale. In just a short-term, 27 new wallets have joined this group, equivalent to an increase of 4.2%, adding an amount of LINK equal to 0.67% of the total circulating supply.

This is the strongest accumulation event from large investors in many months. Notably, this accumulation wave occurred simultaneously with LINK surpassing the 18 USD threshold, indicating that the "big players" have skillfully positioned themselves before the price explodes.

As of the time of writing, LINK is trading around 19.34 USD, surging 14.18% in just 24 hours. This strategic buying move not only reflects confidence in the long-term growth outlook but also reinforces the view that whales are preparing for the next wave of increases as the fundamentals increasingly support the upward trend.

Source: X/Santiment## LINK breaks through the descending channel, consolidating the upward momentum

The daily chart of Chainlink shows that the price has broken out of the descending channel that has constrained the trend for many months. Notably, LINK not only broke out but also successfully tested the resistance line of the channel as a new support area — a typical bullish confirmation signal.

This momentum is reinforced by increased trading volume and an RSI of 62.75, implying strong buying power and still some room for growth before reaching the overbought zone.

The upward trend has also eliminated the series of previous lower highs, reversing market sentiment towards the bulls.

Currently, the nearest resistance is at 27.10 USD, while the 16.00 USD mark serves as short-term support. With a clear breakout structure, the bulls hold a significant technical advantage.

Source: TradingView## The derivatives market records a strong increase in speculative demand

Data from the derivatives market shows a solid support for the upward trend of LINK. The open contract (OI) surged by 26.97%, reaching 1.06 billion USD at the time of recording.

At the same time, trading volume also exploded by 271.10%, reaching 2.70 billion USD – a sign that traders are quickly opening high-leverage positions.

This trend clearly reflects the growing confidence and ongoing expectations for the market to continue rising. Notably, despite the surge in trading volume, there have not yet been any large-scale liquidations, indicating that the position status is being maintained steadily and well-controlled.

Overall, the vibrant activity in the derivatives market is playing a crucial role as a "catalyst," providing momentum for the short-term breakout of LINK.

Source: Coinglass## The spot market confirms the presence of strong buying power.

The developments in the spot market are clearly reinforcing the on-chain accumulation narrative. The Spot Average Order Size indicator shows that recent transactions are increasingly featuring large buy orders, revealing the footprint of whales beyond wallet data.

This trend completely aligns with the increasing number of wallets holding between 100,000 – 1 million LINK, indicating strong institutional interest at the current price level.

When the flow of money in the spot market leans towards large investors, it is often a signal of long-term confidence, rather than short-term speculative calculations.

In conjunction with the increase of OI and the chart structure leaning towards the bulls, the wave of large volume spot orders further reinforces the argument: this increase of LINK is supported by real buying pressure, rather than just a temporary "pump".

Source: CryptoQuant## Chainlink Reserve may boost long-term demand

Chainlink Labs has just introduced Chainlink Reserve – a new mechanism that allows the use of revenue from the protocol to buy back LINK tokens.

This system simultaneously leverages on-chain and off-chain revenue sources, including fees from enterprise-level applications, to accumulate LINK steadily. Through Chainlink's abstract payment layer, the Reserve will automatically purchase tokens and lock them up, forming a deflationary feedback loop: the higher the level of application → the greater the revenue → the more LINK purchased → the increasingly expanded reserve.

This mechanism not only narrows the circulating supply over time but also creates stable demand right from the protocol level. In the long term, Reserve is expected to become a support for LINK prices while nurturing sustainable growth.

The combination of whale accumulation activities, technical breakout signals, increased leverage, and the emergence of Chainlink Reserve is painting a compelling bullish picture for LINK.

Although it is impossible to eliminate the possibility of short-term corrections, the current momentum along with structural improvements is putting LINK in a favorable position. If the ecosystem continues to attract institutional capital, LINK will not only remain strong above the $19 mark but may also aim to reclaim past price peaks.

SN_Nour