Chainlink Price Unaffected by Big Partnership — When Will LINK Move?
LINK price remains stable at $20. Can major adoption push the price higher?
Key Takeaways
- The Chainlink-Telefónica deal highlights real-world blockchain use.
- LINK’s uptrend questions the impact of the Telefónica partnership.
- There is potential for LINK to surpass $20 resistance explored.
In the dynamic world of cryptocurrency, strategic partnerships often serve as catalysts for price movements. However, the recent announcement of Chainlink‘s collaboration with Telefónica, aimed at combating SIM swap fraud through blockchain technology, has left LINK‘s price unmoved.
This partnership has proven that Chainlink garnered interest within the traditional infrastructure, like telecommunication, showing actual adoption. But, with LINK already in an uptrend, can it add to the momentum, or was it already priced in?
Chainlink and Telefónica Partnership
Telefónica and Chainlink are collaborating to introduce blockchain-based solutions to combating SIM swap fraud. The partnership is a response to increasing attacks, such as the $400 million theft from the FTX cryptocurrency exchange in November 2022 and the hacking of the US Securities and Exchange Commission’s Twitter account.
By integrating Chainlink Functions with APIs on the GSMA Open Gateway and connecting to Polygon’s blockchain, this alliance seeks to enhance the security and functionality of web3 applications. This aims to protect online transactions and personal data and defend against unauthorized SIM card changes. This, in turn, could ensure transaction safety and enhance fraud detection in the web3 and decentralized finance (DeFi) sectors.
Will LINK Rise Past $20 Resistance?
Since June 2023, Chainlink (LINK) has been climbing from around $5. It had stabilized around that level since May 2022, with resistance at $9. In October, LINK experienced a significant surge, reaching its peak of $16 in December.
However, the momentum appeared to slow down, with its price only just passing $16 in November before dropping to about $12 on January 9. Nevertheless, LINK still climbed towards the $20 mark.
October’s breakout signaled the start of a bullish phase, marking the first uptrend following a prolonged period of consolidation. Typically, such an uptrend is followed by a corrective phase, where the asset retests previously broken resistance levels for support, aiming to establish a new, higher, baseline price before advancing further.
We have most likely seen the start of its ending climb in this larger uptrend from January 26, when the price started increasing from $16 and breaking out at the last horizontal range.
The $20 zone is a significant resistance and could cause a reversal, resulting in a first bull market correction. But if the price continues progressing past this, the next likely target is $24. However, after this rise ends, a correction to potentially $12 should start before it can carry on moving up.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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