key takeaways
- Chainlink has revealed detailed plans regarding the imposition of staking rewards.
- Following the announcement, LINK surged nearly 20% to reach $9.
- Further buying pressure could propel LINK towards a target above $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 is rapidly gaining momentum after the blockchain protocol highlighted its plan to provide passive income opportunities to token holders.
Decentralized Oracle Network revealed that it is taking significant steps to implement a staking mechanism. The goal is to provide LINK holders the ability to “enhance the security guarantees and user assurances of Oracle Services” by allowing LINK holders to deposit their tokens as collateralized collateral, similar to other delegated proof-of-stake mechanisms.
The firm also outlined a number of steps that will define the success of this initiative. Some of the long-term goals detailed in the blog post include increasing both crypto-economic security and user assurance of Chainlink oracle services, empowering community members to participate directly in the network, ensuring that the bounty distribution program is sustainable for the future. Is. , and establishing a strong reputation framework for how nodes are selected.
Since the announcement, with investors pushing up the price of LINK by about 20%, the chances of earning a passive bet return have sat well. It went on to trade from a low of $7.5 to a high of $9 in the last 24 hours to become one of the best performing crypto assets. The sudden increase in buying pressure has helped the coin break an important area of resistance, which could lead to further gains.
From a technical perspective, Chainlink broke out of an ascending triangle that has been developing since mid-May on its 12-hours chart. The height of the y-axis of the pattern is targeting 33.3% bullishness. If confirmed, the LINK could move above the psychological resistance level of $10 to $10.6o.
It is worth mentioning that the 100 hourly SMA at $9.2 could act as an upside resistance. Failing to cross this barrier could result in a brief correction in the triangle’s x-axis at $8 before LINK regains its upside potential.
Disclosure: At the time of writing, the author of this article holds BTC and ETH.
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