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LINK rose by 4% on Friday amid a five-day winning streak
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The cryptocurrency faces some resistance at the 50-day MA
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Investors should buy on potential correction and target $8
An intraday gain of 4% on Friday was enough to take the price of Chainlink (LINK/USD) to $6.9. The token is clearly bullish since overcoming resistance at $6. The cryptocurrency has printed green candlesticks for the past five days. There are no clear fundamentals for the surge, but expectations around Chainlink 2.0 Economics could be fueling the demand for LINK. What lies ahead?
Chainlink Staking (v0.1), one of the key changes introduced under Chainlink Economics 2.0, is very close. The developers announced that the staking feature would go live on the Ethereum mainnet on December 06. Qualifying addresses can stake up to 7,000 tokens in a capped v0.1 staking pool. The staking pool will then be granted General Access on December 08, 12 PM ET. From there, anyone can stake to the initial cap of 7,000 LINK tokens per address. The staking pool is initially capped at 25 million LINK tokens or 5% of the circulating supply.
The start of staking will allow users to participate in the growth of the Chainlink ecosystem. Users will commit their tokens to smart contracts for rewards. As with most changes, native tokens tend to overperform ahead of the key developments. Potentially, this is the reason LINK is witnessing a bullish surge.
LINK attempting recovery above the moving averages
A technical outlook of the Chainlink token shows it is on a short-term rally. The token’s price has moved above the 20-day moving average.
A bullish MACD crossover also occurred, with the indicator showing improving momentum.
Will LINK stay bullish?
The recovery above $6 gives Chainlink a chance to remain bullish in the medium term. However, the 50-day moving average offers resistance. It would be interesting to watch whether bears will force a correction at the 50-day MA.
A correction would attract buyers as long as the LINK price remains above $6. In the medium term, LINK could rise to find the resistance at $8.