Chainlink is doing surprisingly fine and has been recovering faster and stronger compared to many other tokens. Even the FTX debacle did not stop it from gaining new ground, although the LINK token dropped back to the $7 support level during the inevitable price correction.
At the moment of writing, LINK is trading at $6.9 with a notable reduction in trading volume indicating the preparedness of the market for another rally.
Can LINK touch the $10 resistance level?
On November 8, LINK skyrocketed to $9.4 reaching its August levels. It was a good moment in time, but the price fell dramatically and the FTX issue only worsened the descent.
However, it was not as catastrophic as some experts predicted. The token reversed its course and reached a new equilibrium at $9.6 which is now a newly established support line.
The current reduction in volume, a favorable RSI position, and recent announcements that their first rounds of staking were a huge success created a good moment for the bulls to rally.
Despite the momentum of the staking announcement halting after the first day, the token is still in good shape and can dash the next support level.
Technical analysis says that the token may reach the $9.4 threshold if it can hold to the $8.9 support level (in case, it makes it there). From there, bulls may try to pump it to $10, but another scenario is just as likely.
The worst-case prognosis is indicating that the next support line could be established in $4.4 which is a 36% drop from its current price.
Everything depends on the longevity and performance of the staking feature
Chainlink is all-in on staking. The short-term potential of the LINK token depends on how the crypto community and investors perceive the performance of staking and whether enough people will buy into the idea of staking.
The $10 mark seems likely because the token managed to come close to this milestone multiple times in 2022. On the other hand, if investors feel that staking was a bad move, the token may start freefalling to $4.40!