Chainlink price staged a strong comeback on Tuesday as investors prepared for the upcoming network upgrade in the ecosystem. LINK surged to a high of $7.50, which was the highest level since November 8. It has jumped by more than 33% from the lowest level this month.
LINK staking in December
Chainlink is an important blockchain project in the oracle industry. It plays an integral role in industries like decentralized finance (DeFi) and non-fungible tokens (NFT). As an oracle, it helps to bring off-chain data like cryptocurrency and stock prices to the on-chain ecosystem.
Chainlink has also expanded its service offerings in the past few months. For example, it launched a VRF product that provides verifiable and tamper-proof random number generators for industries like gaming and NFTs.
It also launched Chanlink Keepers which provide reliable and high-performance automation services for smart contracts.
Most importantly, the company’s Proof of Reserve project has become useful in the crypto industry. It provides autonomous, reliable, and timely audits of on-chain and off-chain reserves. Many players in the blockchain industry are working to provide these solutions in a bid to boost transparency.
Read more about how to buy Chainlink.
LINK price has been in a strong bullish trend because of the upcoming network upgrade that will introduce staking in December. This staking is an important part as Chainlink transforms into a decentralized oracle network. As I wrote in this article, this launch will be part of Chainlink 2.0 transition.
The initial stage of LINK staking will start in December and will be open to a small team of holders. Initially, they will need to stake up to 7,000 LINK. Similarly, Chainlink node operators will be able to stake up to 50,000 coins.
Historically, cryptocurrency prices tend to rally ahead of a major upgrade. For example, Ethereum outperformed BTC towards the Merge while Band Protocol surged ahead of the V2.4 upgrade recently.
Chainlink price forecast
The four-hour chart shows that the LINK price has been in a strong bullish trend in the past few days. In this period, it has moved to the 50% Fibonacci Retracement level. It has also rallied above the 25-day and 50-day moving averages.
Further, the coin has formed an inverted head and shoulders pattern. Therefore, Chainlink will likely keep rising as buyers target the key resistance level at $8.6, which is the 61.8% retracement point. A drop below the support at $7 will invalidate the bullish view.
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