Key Insights:

• On Tuesday, Chainlink (LINK) jumped by 9.16% to end the day at $8.70.

• The release of a new roadmap, including the option to stake LINK delivered support.

• Key technical indicators are bullish. LINK sits above the 200-day EMA.

On Tuesday, Chainlink (LINK) surged by 9.16%. Following a 4.32% rally on Monday, LINK ended the day at $8.70.

A bullish afternoon session, supported by a bitcoin (BTC) rebound from a day low of $29,210, delivered support.

A pickup in risk appetite across the US equity markets also provided crypto market support.

For LINK, however, investor reaction to updates from the Chainlink was key to the breakout session.

Chainlink Releases a New Road Map and Staking Plan

On June 7, Chainlink announced the network’s long-term goals, roadmap, and initial implementation that included LINK staking.

According to the announcement,

“Chainlink staking is being built around four long-term goals. These goals serve as the guiding principles behind its development and will be the pillars upon which to define its success over time as the staking system matures.”

The four long-term goals include:

• Increase the cryptoeconomic security and user assurances of Chainlink Services.

• Enable community participation in the Chainlink network.

• Generate sustainable rewards from real long-term use.

• Empower node operators to access higher-value jobs by staking.

The announcement went on to say,

“The initial staking pool in v0.1 will be capped in size, offering distinct allotments to node operators, community members, and the coordinator of oracle networks. The pool will start with an aggregate size of 25 million LINK tokens, with the planned goal of scaling to a pool size of 75 million LINK tokens in the months after the launch, based on demand.”

Stake rewards will be up to 5.0% in v0.1 and will then vary after the release of V1, where rewards will depend on user fees and commitment periods.

Chainlink Price Action

At the time of writing, LINK was down 0.16% to $8.69.

Technical Indicators

LINK will need to avoid the $8.33 pivot to test the First Major Resistance Level at $9.35.

Broader crypto market gains would support a breakout from Tuesday’s high of $8.98.

In the event of another extended rally, LINK should test the Second Major Resistance Level at $10.00.

A fall through the $8.33 pivot would bring the First Major Support Level at $7.68 into play.

Barring an extended sell-off throughout the day, LINK should avoid sub-$7.50. The Second Major Support Level sits at $6.66.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. At the time of writing, LINK sat above the 200-day EMA, currently at $8.17.