LINK price eyes a 30% move as Chainlink announces early access to staking

• Downside movement in Chainlink price is necessary for the short-term ahead of a bullish move to $9.50.
• Eligible investors will have early access to Chainlink staking.
• Whales steady their support behind LINK price, oblivious to overarching bear market forces.
• Chainlink price will continue flaunting a bullish outlook as long as support between $5.80 and $6.40 is intact.

Chainlink price is down 3.40% on the day after opening the session at $7.12. A second bearish candle continues to form and may increase the risk of declines stretching to tag LINK’s primary support between $5.80 and $6.40.

Investors should keep their eyes on the prize – as LINK wallows in the mud for the decisive floor price. Chainlink price’s scope outside of its technical outlook appears strongly bullish. Large volume investors (whales) believe retracements are not bad because they could offer sidelined market participants new buying opportunities.

Are you eligible for early access to Chainlink staking?

Chainlink has urged holders of its LINK token to check if they are eligible for early access to staking. According to a blog post that accompanied the announcement via Twitter, “those who qualify will get priority access to LINK staking when the pool opens.”

The network uses on-chain and off-chain activity – accessed through the users’ Web3 wallet to determine eligibility.

Chainlink Staking has been popularized as “a key cryptoeconomic security mechanism in which stakers commit LINK tokens in smart contracts to back certain performance guarantees around oracle services.” The process, likely to debut before the year’s end, will allow Chainlink decentralized oracle networks (DONs) to increase their service scope by tapping higher-value use cases across Web3.

Staking also increases demand for the LINK token as investors seek to earn annualized rewards. Furthermore, Chainlink price could trend north due to a possible squeeze in selling pressure coupled with increased demand.

Can Chainlink price brave bear market forces for a 30% bullish move?

The Relative Strength Index (RSI) dons a bearish outlook, bolstered by its negative divergence from LINK price. Movement below the midline suggests that sellers will have the upper hand in the short term.

Following its recent rejection from a confluence resistance at $7.36, shaped by the 50-day SMA (Simple Moving Average), red, and the 100-day SMA, blue – Chainlink price is poised to retest the buyer congestion between $5.80 and $6.40.

A minor pullback to the support range is necessary for LINK to collect enough liquidity to deal with the seller congestion at $7.36 and break above a crucial falling trend line.

LINK/USD daily chart

Sidelined investors and traders looking for long positions to $9.50 will consider the area between $5.80 and $6.40 a suitable entry point. Insight from the daily chart shows this region having functioned as a springboard to higher levels over the last six months.

Chainlink Supply Distribution

Large volume holders are already backing a potential Chainlink price rally. Santiment shows that addresses with between 100,000 and 1 million tokens have grown to account for 10.14% of the network’s total supply from the 7.83% recorded in May.

A LINK price rally depends on a positive combination of fundamental and micro factors. Therefore, as demand rises behind the token, Chainlink price could gradually nurture a significant bullish trend reversal.