Chainlink Breaks Out on Staking News
Chainlink is showing bullish momentum, after the blockchain protocol revealed its plans for passive income opportunities for tokenholders.
It has made significant progress in implementing a staking system, according to the decentralized oracle network. The goal is to give LINK holders the ability to “increase the security guarantees and user assurances of oracle services” by allowing LINK holders to deposit their tokens as staking collateral, similar to other delegated Proof-of-Stake mechanisms.
The company also provided a list of steps that will determine the success of the initiative. The blog post outlines some of the long-term goals, including increasing crypto-economic security and user confidences in Chainlink oracle service, empowering community members directly to participate in the network, making sure the reward distribution program can sustain the future, and creating a strong reputation framework that will govern how nodes are chosen.
Investors seem to like the idea of earning passive staking returns, which has driven the price of LINK nearly 20% higher since its announcement. It traded as low as $7.5, and then rose to $9 to become one the best-performing crypto assets in the past 24 hours. This sudden rise in buying pressure has allowed the token to break through a critical resistance area, which could allow for further gains.
Chainlink has now broken out from an ascending triangle, which has been developing on the 12-hour chart since mid May. The height of the pattern’s Y-axis projects a 33.3% bullish target. If validated, LINK could surpass the $10 psychological resistance level to reach $10.6o
The 100-hour moving average of $9.2 may act as resistance. Failing to move past this hurdle could result in a brief correction to the triangle’s X-axis at $8 before LINK can achieve its upside potential.