Key Takeaways:
- LINK prices eye 216%+ gains if the falling wedge pattern holds.
- Chainlink introduced staking in its ecosystem on Tuesday, driving prices upwards.
NEW DELHI (CoinChapter.com) — Smart contracts platform Chainlink’s native token LINK might rise more than 200% after it breaks out of a bullish technical pattern called the “falling wedge.”
In detail, the pattern forms when a cryptocurrency’s prices bounce between two downward sloping, converging trendlines. However, the breakout’s confirmation relies on high volumes as increasing volume indicates traders’ bullish sentiment.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines.
LINK’s price target when it breaks out of the pattern, LINK’s price target is $26.36, a jump of nearly 217% from current price levels.
LINK Prices Falter After Four-Days Of Uptrend
LINK prices jumped 34% after starting an uptrend on Jun 4, jumping from $6.7 on Jun 4 to reach a high of $9 on Jun 7. However, bears seemed to be moving in as Chainlink prices dipped on Wednesday. The altcoin fell 7% between intraday high ($8.85) and low ($8.23) levels.
Moreover, the momentum oscillator MACD has been showing a strengthening upward momentum for the LINK token’s prices.
Also Read: Chainlink price risks 30% decline in May as LINK paints a bearish continuation pattern.
Positive bars on the MACD histogram have been expanding, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD).
If bulls continue pushing LINK prices, the Chainlink token would likely move to challenge resistance from its 50-day moving average (50-day MA, purple wave) near $9.23. A move above the 50-day MA might help LINK prices challenge resistance near $10.8.
A sustained uptrend could see LINK prices reach $12.2, near its 100-day MA (green wave) before corrections pare prices.
On the other hand, if bears continue selling, LINK prices might end up testing immediate support near $8, which acted as resistance for LINK between May 11 and Jun 6. A breach below immediate support could lead Chainlink prices to test support from its 20-day MA (red wave) near $7.02.
Finally, a market-wide sell-off could push LINK prices to support near $6, which the altcoin last reached in Jul 2021.
Staking
Meanwhile, Chainlink introduced staking in its ecosystem, in a bid to scale the platform’s security. Chainlink has consistently been the largest oracle project in the crypto ecosystem. As a result, investors have been seeking staking option on the blockchain for some time now.
Also Read: DeFi Protocol Beanstalk raises over $5.5M in ‘The Barn Raise.’
Chainlink’s announcement stated that its staking plans center around four goals. Primarily, staking would help increase the cryptoeconomic security of the platform along with user assurances of Chainlink services.
Additionally, the oracle platform hopes to enhance community participation in the network, while generating and distributing rewards to stakers. Finally, Chainlink plans to allow node operators “gain access to higher-value jobs and more fee opportunities in the Chainlink Network.”
The introduction of staking is a pivotal moment that marks the evolution to Chainlink Economics 2.0—a new era in Chainlink’s long-term security and network economics.
Chainlink’s announcement said
At the time of writing, LINK was trading at $8.52, down 2.3% on the day.
