Key Takeaways
Chainlink has revealed detailed plans about the implantation of staking rewards.
LINK surged by nearly 20% to hit $9 following the announcement.
Further buying pressure could see LINK hit an upside target of $10.60.
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Chainlink has released a long-term roadmap detailing how the network plans to implement LINK token staking.
Chainlink Breaks Out on Staking News
Chainlink appears to be gaining bullish momentum after the blockchain protocol shed light on its plans to provide passive income opportunities to token holders.
The decentralized oracle network revealed that it is making significant strides to implement a staking mechanism. 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 firm also outlined a series of steps that will define the success of this initiative. Some of the long-term goals detailed in the blog post include increasing both the crypto-economic security and user assurances of Chainlink oracle services, empowering community members to directly participate in the network, making sure that the reward distribution program is sustainable for the future, and establishing a robust reputation framework for how nodes are selected.
The prospect of earning a passive staking yield appears to have sat well with investors propeling the price of LINK up nearly 20% since the announcement. It went from trading at a low of $7.5 to hitting a high of $9 to become one of the best-performing crypto assets over the past 24 hours. The sudden spike in buying pressure has helped the token breach a critical area of resistance, which could lead to further gains.
From a technical perspective, Chainlink has broken out of an ascending triangle that has been developing on its 12-hour chart since mid-May. The height of the pattern’s Y-axis projects a 33.3% bullish target. If validated, LINK could move past the psychological $10 resistance level to reach $10.6o.
LINK/USD 12 hour chart. Source: TradingView
It is worth mentioning that the 100-hour moving average at $9.2 could act as resistance on the way up. 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.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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