Chainlink (LINK) appears to be poised for a 25% price hike in the days leading up to the launch of its staking protocol, based on several fundamental and technical factors.
Chainlink price rises before the launch of the parking protocol
The staking feature, which will go live as v0.1 in beta mode on December 6, is part of the so-called “Chainlink Economy 2.0”which focuses on increasing reward opportunities for LINK holders to “help increase the security of the crypto economy” from Chainlink’s oracle services.
Previously, Chainlink users had to launch their own nodes to receive LINK token rewards. The parking feature effectively opens up new avenues for them to earn LINK rewards that could, in theory, drive demand for the token.
In addition, the demand for LINK’s parent platform Chainlink as an oracle service provider should also increase.
David Gokhshtein, founder of blockchain-focused media company Gokhshtein Media, believes it could happen after the recent collapse of FTX.
The analyst highlighted how traders have been looking for more clarity on exchange reserves after the FTX fiasco, which may boost demand for oracle services like Chainlink and in turn boost LINK’s price.
$LINK is definitely being overlooked. With everything that’s happened and with the new “Proof of Reserves” being pushed out there, ChainLink will be used to push that data out there.
— David Gokhshtein (@davidgokhshtein) November 26, 2022
$LINK is definitely being overlooked. With everything that has happened and with the new “Proof of Reserves” being released, ChainLink will be used to send that data.
Chainlink Labs launched its proof-of-reserve auditing services to exchanges on November 10.
Speculations have contributed to LINK’s price rise in recent days. In particular, Chainlink price gained 35.50% eight days after bottoming locally around $5.50, trading as high as $7.50 on Nov. 29, its highest level in two weeks.
The LINK/USD pair now has its sights set on a bigger rally in the short term, as suggested by the price technicals.
A failed LINK price breakout
LINK recaptured its multi-week uptrend line on Nov. 29, three weeks after losing it in the wake of the FTX-led market sell-off.
In doing so, the Chainlink token also invalidated its prevailing ascending triangle breakout setup towards $4.
It is now trading within the pattern’s range, with a view to a rally towards the upper trend line near $9.40, 25% above current price levels, by the second week of December, as shown below.
Michaël van de Poppe, market analyst and founder of Eight Global, also anticipates LINK to reach or exceed $9.
#Chainlink showing a ton of strength, also expecting continuation there to happen.
If I didn’t have a long yet (but I do), then I’d be targeting for something like this in which I’d be looking at $9 area for a TP. pic.twitter.com/rRdv4eL91H
—Michaël van de Poppe (@CryptoMichNL) November 29, 2022
Chainlink shows a ton of strength, expect continuation to happen there as well.
If I didn’t have a long contract yet (but I do), then I would be looking at something like this where I would be looking for a $9 area for a TP.
Furthermore, a bullish continuation move above the $9.40 resistance could see LINK fixing on $16, the breakout target of the ascending triangle.
On the contrary, If it breaks back below the lower trend line of the triangle, there is a risk of the breakout setup towards $4 coming back into play, which would be about a 45% decline in price. current.
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