The price of Chainlink (LINK) could rally on various speculations over Chainlink’s oracle service growth together with a supportive technical pattern.
LINK seems poised for a 25% price rally in the coming days leading up to its staking protocol launch, according to several technical and fundamental factors.
Chainlink Price Rallies Before The Staking Launch
The staking feature, which is set to go live as v0.1 in beta mode on December 6, comes as a part of the famous “Chainlink Economics 2.0” that majorly focuses on enhancing LINK holders’ reward-earning chances for “helping increase the crypto economic security” of Chainlink’s oracle services.
Previously, Chainlink users had to launch their nodes to get rewards in LINK tokens. Notably, the staking feature mainly opens new ways for them to earn LINK rewards that might, theoretically, increase demand for the token.
Moreover, demand for LINK’s parent platform Chainlink, as an oracle service provider, is also expected to increase significantly.
The founder of blockchain-focused media firm Gokhshtein Media, David Gokhshtein, thinks that it might happen in the wake of the recent FTX collapse.
The analyst comment on how traders have been looking for more clarity on the Exchanges’ reserves after the FTX saga, which can enhance growth and demand for oracle services like Chainlink, and consequently, push the price of the LINK token higher.
$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
Chainlink Labs introduced its PoR auditing services to crypto exchanges on November 10.
The speculations have enabled the LINK price to rally considerably in recent days. Interestingly, Chainlink’s price gained 35.5% within eight days after bottoming out locally at about $5.50 – trading for around $7.50 on November 29, its highest price in two weeks.
The LINK/USD pair now targets more upside movement in a short time, based on several price technical indicators.
A Failed LINK Price Breakdown
LINK manage to reclaim its multi-week rising support trendline on November 29, about three weeks after it lost the trendline in the wake of the FTX-led market downturn.
In doing that, the Chainlink token also invalidated its prevailing ascending triangle breakdown setup towards $4.
The token now trades within the pattern’s range, targeting a rally toward the upper trendline near $9.40, up 25% from the current price levels, by the second week of December, as shown in the market chart.
One market analyst and founder of Eight Global, Michaël van de Poppe, also expects LINK to reach or cross the $9 mark.
#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
Furthermore, a bullish continuation move above the $9.40 resistance may have LINK surge towards $16 next, the ascending triangle breakout target.
Equally, dropping below the triangle’s lower trendline again will risk bringing the breakdown setup toward $4 back in play, losing 45% from the current prices.
