- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.