.jpg)
Chainlink (LINK) looks set to see a 25% price rally in the days leading up to the launch of its staking protocol, based on several fundamental and technical factors.
Chainlink price rises ahead of staking launch
The staking feature, which will go live as v0.1 in beta mode on December 6, is part of the so-called “Chainlink Economics 2.0” which focuses on increasing reward opportunities for LINK holders. to “help increase the crypto-economic security” of Chainlink’s oracle services.
Previously, Chainlink users had to launch their own nodes to receive LINK token rewards. The staking feature effectively opens up new avenues for them to earn LINK rewards that could, in theory, boost demand for the token.
Additionally, demand for LINK’s parent platform, Chainlink, as an oracle service provider is also expected to increase.
David Goldstein, the founder of blockchain-focused media company Gokhshtein Media, thinks this could happen following the recent collapse of FTX.
The analyst highlighted how traders were looking for more clarity on exchange reserves after the FTX fiasco, which can boost demand for oracle services like Chainlink and, in turn, drive LINK’s price higher.
$LINK is definitely neglected. With all that having happened and with the new “proof of reserves” released, ChainLink will be used to release this data.
— David Gokhshtein (@davidgokhshtein)
Chainlink Labs launched its PoR audit services to exchanges on November 10.
Speculation has contributed to LINK’s price rally in recent days. Notably, Chainlink’s price gained 35.50% eight days after hitting a local low at around $5.50 – trading as low as $7.50 on November 29, its highest level in two weeks.
The LINK/USD pair is now looking to continue its near-term rise, according to price techniques.
A Failed LINK Price Breakdown
LINK reclaimed its multi-week upward support trendline on Nov. 29, three weeks after losing it following the market selloff led by FTX.
In doing so, the Chainlink token also invalidated its dominant ascending triangle pattern towards $4.
It is now trading inside the pattern’s range, eyeing a rally towards the upper trendline near $9.40, up 25% from current price levels, by the second week of trading. December, as shown below.
Michaël van de Poppe, market analyst and founder of Eight Global, also predicts that LINK will reach or exceed $9.
#Chain link showing a ton of strength, also expecting continuation to happen.
If I didn’t have long yet (but I do) then I would be targeting something like this where I would be looking for a $9 zone for a TP. pic.twitter.com/rRdv4eL91H
— Michael van de Poppe (@CryptoMichNL)
Additionally, a bullish continuation move above the $9.40 resistance could have LINK eye $16 next, the breakout target of the ascending triangle.
Conversely, sliding below the lower trendline of the triangle again risks bringing the breakdown setup back towards $4, down about 45% from current prices.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
