Buy the rumor, sell the news? Chainlink (LINK) price drops after staking launch
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Chainlink has a busy start to December when it comes to development launches. The Chainlink (
According to Cointelegraph head of markets, Ray Salmond:
“Crypto prices are down across the board, likely due to traders taking a risk-off stance ahead of next week’s Dec. 13 FOMC meeting. On a more granular view, mainnet upgrades and staking launches tend to exhibit a buy the rumor sell the news dynamic and what we see from LINK price is not defying the norm. Concurrently, we can see ApeCoin also pulling back on the eve of its staking launch. From the view of technical analysis, LINK price remains in its 211-day range between $9.50 to $5.60. While the price is below the range midline, it is currently testing the 20-day moving average and previous corrections have found support at $6 and $5.50.”
While the LINK staking program may be beneficial to the longevity of the Chainlink ecosystem, the market is currently responding negatively.
As further developments and updates continue, investors may begin to understand the staking dynamics more deeply and if LINK emissions prove to be sustainable, the initiative could prove to be a benefit to investors and the ecosystem as a whole.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
