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Tag: Chainlink Bullish

  • Chainlink Staking Program Exceeds Expectations, Drives LINK Price Up By 12%

    Chainlink Staking Program Exceeds Expectations, Drives LINK Price Up By 12%

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    In a significant development for the blockchain data-oracle project, Chainlink (LINK) has witnessed a significant response to its enhanced crypto-staking program, amassing over $632 million worth of its LINK tokens within a remarkably short period. 

    The company announced a recent press release highlighting the “overwhelming demand” during the early-access period, which filled the staking limit in just six hours.

    Chainlink Unveils Staking v0.2

    Chainlink, recognized as the industry-standard decentralized computing platform, unveiled Chainlink Staking v0.2, the latest upgrade to the protocol’s native staking mechanism. 

    The Early Access phase has commenced, inviting eligible participants to stake up to 15,000 LINK tokens. This phase will last four days before transitioning into the General Access phase, enabling investors to stake up to 15,000 LINK tokens as long as the staking pool remains unfilled. 

    Per the announcement, the upgrade introduces an expanded pool size of 45,000,000 LINK tokens, equivalent to 8% of the current circulating supply. This enlargement aims to enhance the accessibility of Chainlink Staking, enabling a more diverse audience of LINK token holders to participate. 

    Staking forms an integral part of Chainlink Economics 2.0, which brings an additional layer of cryptoeconomic security to the Chainlink Network. Specifically, Chainlink Staking empowers ecosystem participants, including node operators and community members, to support the performance of Oracle services by staking LINK tokens and earning rewards for contributing to network security.

    While v0.1 served as the initial phase of the Staking program, v0.2 has been restructured into a fully modular, extensible, and upgradable Staking platform. Building upon the lessons learned from the previous release, the v0.2 beta version focuses on several key objectives. 

    Chainlink is introducing several new features to enhance its staking program. These include a new unbinding mechanism that provides more flexibility for Community and Node Operator Stakers.

    Additionally, security guarantees for Oracle services are being reinforced by slashing node operator stakes. A modular architecture is being adopted to support future improvements and additions, and a dynamic rewards mechanism is being introduced to seamlessly accommodate new external sources of rewards in the future, such as user fees.

    Following the conclusion of the Early Access phase on December 11, 2023, the v0.2 staking pool will transition to General Access. At this stage, anyone will have the opportunity to stake up to 15,000 LINK tokens.

    LINK Surges To New Yearly High

    Given Chainlink’s successful upgrade, LINK, the native token of the decentralized computing platform, experienced a significant surge of 12%, reaching a price as high as $17.305. 

    This price level has not been seen since April 2022, signifying a new yearly high for the cryptocurrency. However, LINK has retraced slightly and is currently trading at $16.774.

    Crypto analyst Ali Martinez has highlighted a critical support zone for Chainlink. Martinez noted that over 17,000 addresses purchased 47 million LINK tokens from $14.4 to $14.8. 

    This accumulation by many addresses suggests strong buying interest in this price range, potentially acting as a support level for the token.

    The 1-day chart shows LINK’s uptrend over the past 24 hours. Source: LINKUSDT on TradingView.com

    While the support zone may hold and trigger a rebound in the price of LINK, Martinez cautions that investors should remain vigilant. Any signs of weakness, such as a breach of the support zone or negative market sentiment, could prompt investors to sell their LINK holdings to avoid losses.

    It remains to be seen whether LINK can maintain its position above these critical levels and whether the broader cryptocurrency market will enter an accumulation phase or experience a retracement after the significant upward movement witnessed in recent weeks. 

    Such a retracement could potentially impact LINK’s price and lead to a test of the support above levels. On the other hand, the token faces immediate resistance at $17.483, $18.069, and $18.910. These represent the final hurdles to overcome before LINK reaches the $20 milestone.

    Featured image from Shutterstock, chart from TradingView.com 

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    Ronaldo Marquez

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  • Chainlink Signal Resurfaces: Is Another 31% Rally Coming?

    Chainlink Signal Resurfaces: Is Another 31% Rally Coming?

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    On-chain data shows that a Chainlink signal that last preceded a 31% rally for the asset’s price has just reversed.

    Chainlink Age Consumed Metric Has Observed A Sharp Spike Recently

    According to data from the on-chain analytics firm Santiment, LINK has recently seen a significant movement from old coins. The relevant indicator here is the “Age Consumed,” which tells us whether the dormant Chainlink tokens are on the move or not right now.

    When the indicator’s value registers a large spike, it’s a sign that the blockchain is currently observing the transfer of a significant number of old coins. Such dormant tokens belong to a cohort called the “long-term holders” (LTHs), made up of the relentless hands of the sector.

    As such, this metric surging can be something to watch out for, as it means that these LTHs, who usually remain quiet no matter what’s going on in the wider market, have decided to break their dormancy.

    Now, here is a chart that shows the trend in the Chainlink Age Consumed over the last few months:

    The value of the metric appears to have shot up recently | Source: Santiment on X

    As displayed in the above graph, the Chainlink Age Consumed indicator has observed a sharp rise recently, implying that the LTHs have been making transactions.

    At the peak of this latest spike, the metric’s value touched 4.28 billion, which is the highest level seen since the middle of September. Back then, the indicator registered a spike almost double in scale, and interestingly, what followed in the next couple of weeks was a 31% rally as LINK went from $6.36 to $8.22.

    It’s hard to say if a similar pattern would repeat for Chainlink this time since the LTHs could have broken their silence for several reasons, including for selling.

    An analyst has pointed out that yesterday (which was about the same time as this spike in the Age Consumed), the whales made many transactions, as the chart below shows.

    Chainlink Whale Transactions

    Looks like the metric has spiked up | Source: @ali_charts on X

    In total, the Chainlink network observed 2,600 transactions valued over $100,000 yesterday. The spike would confirm that the LTHs who broke their dormancy weren’t just ordinary investors but the whales.

    In isolation, it’s hard to say why these two indicators recently observed a spike. Still, when looking at the latest LINK news, perhaps the most likely explanation becomes apparent.

    Yesterday, Chainlink staking v0.2 went live on the Ethereum blockchain, allowing the v0.1 stakers to migrate toward the new network. Thus, given the close timing of the spikes in the Age Consumed and Whale Transaction Count, it would appear quite probable that these LTHs were making transfers toward the new staking pools.

    LINK Price

    Chainlink had observed some drawdown towards the $13.7 mark just recently, but it would seem like the asset has already recovered as it’s now trading around $14.7.

    Chainlink Price Chart

    LINK has already recovered from its recent lows | Source: LINKUSD on TradingView

    Featured image from iStock.com, charts from TradingView.com, Santiment.net

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    Keshav Verma

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