Lo staking v0.1 by chainlink is about to arrive on the mainnet: the event is scheduled for December 6th and, in the meantime, the price of LINK has shown a decidedly positive performance in the last week, so much so that the token was traded at $7,58, with an increase of 13,5% in the last seven days.
However, one must certainly not forget that Chainlink has been sideways for seven months. Only the comments dovish by US Federal Reserve Chairman Jerome Powell in a recent speech prompted a new emphasis on the stock market cryptocurrency. But will it last?
Looking at the daily chart, Chainlink is still in the middle of its 7-month range, but the introduction of the staking system could generate much more interest in the project and bring new life.
Recall that LINK has not made new lows in the 1-day time frame recently, suggesting bullish strength from a technical perspective. Chainlink (LINK) price is up 35% from its recent low. However, the upper end of the 7-month range remains the next crucial target on the daily chart. If LINK manages to break out, the next target could be the zone around $12,30.
On a shorter time horizon, LINK is in the middle of its 7-month range, where key resistance zones are also located. A correction was seen recently on the 4-hour chart, after which it rallied again. Now, that being said, it's hard to think that LINK could go below $6,70. Rather, it could be convenient to look upwards and, above all, at the resistance positioned in the zone between $8,50 and $9,50.
Returning to v0.1 version of Chainlink Staking, released on the mainnet of Ethereum on December 6, it is evident that the project aims to complete an iterative approach to developing future versions of staking beyond this initial release.
We recall that originally a lock-in period of 12-24 months was foreseen, based on a conservative release cycle. However, after discussions with several community members and node operators, it has now become clear that the final solution will be a faster iteration with frequent releases, each with a small scale. The next staking version (v0.2) is scheduled for release in 9-12 months. At that point, version 0.1 stakers will be able to unlock or migrate their LINKS and rewards for the first time.
In short, on December 6, only some addresses will initially be eligible for staking. They will be able to stake up to 7.000 LINKS worth approximately $53.000 in a limited staking pool. On December 8, the staking pool will be open to everyone. Again, the pool will have an initial cap of 25 million LINKs.
Now, as staking reduces the supply of liquid LINK, this event could be a potential price catalyst, taking Chainlink price out of its 7-month range. Investors should therefore watch closely how LINK performs over the next couple of weeks…