Chainlink v0.2 upgrade may not be fully priced in LINK

Chainlink, an Ethereum-based platform that facilitates decentralized oracles, is gearing up for a significant upgrade with the introduction of its staking v0.2. On Friday, Chainlink's token LINK is trading in the 24-hour range of $7.27 and $7.69 after registering 5% price gain. However, the market might not have fully factored in the impending upgrade into the token's value, giving LINK chances of further price gains ahead.

Chainlink migration period is underway

Chainlink is in the spotlight for its v0.2 upgrade, which will allow staking access once the v0.1 migration period ends. As per the official release, "Chainlink Staking is being rearchitected into a staking platform with a total pool size of 45M #LINK."

This transition is said to be a significant overhaul of the network, promising greater flexibility for stakers, improved security guarantees, seamless future upgrades and a dynamic rewards mechanism.

If the market perceives the upgrade as a game-changer for Chainlink, the LINK token's value may have room for growth. It is possible that the upcoming v0.2 upgrade will be fully priced into the LINK token's value after the general access migration from v0.1 to v0.2 concludes.

Chainlink's exchange reserves paint positive picture

Two critical factors offer a mixed picture for Chainlink's LINK token. Firstly, exchange reserves or LINK tokens with exchanges have continued to fall in the last seven days. A decrease in exchange reserves typically suggests lower selling pressure, which is bullish for LINK price. With lower reserve availability on exchanges, with the last value close to $146 million, as per CryptoQuant data, LINK could potentially shift to more price appreciation.

FXStreet previously noted that LINK whale addresses have been accumulating, adding $38 million worth of tokens in the last week. This has been a positive contributor to its price. 

Contrarily, the exchange netflow total, which represents net deposits on exchanges, has shown higher activity based on the 7-day average. This increase in deposits is often bearish as it anticipates higher selling pressure. 

At the time of writing, the trading price of Chainlink's LINK token is $7.69. The token appreciated over 5%  in the last 24 hours and 7% over the past week, based on CoinGecko figures. 

As Chainlink's v0.2 upgrade progresses and the migration from v0.1 continues, the LINK outlook is promising. However, increased net deposits might limit the scope for appreciation for LINK. The potential impact of the upgrade on LINK's value will ultimately depend on how the market perceives the features.