Chainlink Partners With Fireblocks for Stablecoin Issuance — LINK Steady Above $10
Chainlink Reveals Fireblocks Partnership | Credit: Hameem Sarwar
Key Takeaways
- Chainlink and Fireblocks have formed a partnership regarding Stablecoin issuance.
- The LINK price currently trades above $10 and is in the middle of its pattern.
- Has Chainlink reached a bottom, or will it continue falling below $10?
Chainlink (LINK) increased near the end of 2023, but the movement slowed in March 2024, leading to an ongoing downward trend. So far, in 2024, the LINK price has dropped by nearly 30%.
Positive Chainlink news hit on Sept. 7, when a partnership with Fireblocks was revealed. The LINK price holds above the $10 support area but did not react to the news.
Let’s look at the price movement for LINK and determine where it will head next.
Chainlink Fireblocks Partnership
According to the announcement , the Chainlink Fireblocks partnership will help institutions and banks manage and issue stablecoins. This will be done through several features:
- Stablecoin issuers will securely mint, distribute, and manage tokenized assets via Fireblocks’ tokenization engine.
- Issuers verify the value and collateral for each stablecoin through Chainlink’s Proof-of-Reserve mechanism.
- They will be able to track the price of an asset in real-time through Chainlink’s Data feeds.
- Fireblocks will supply custody through its Custody Wallets-as-a-Service program and help with compliance integrations.
So, in this partnership, Fireblocks will provide the tokenization engine, custody, and compliance, while Chainlink will provide its data feeds and proof-of-reserves mechanism.
Chainlink Correction Could Be Over
The most likely wave count shows that LINK started a five-wave increase in June 2023 and ended with a yearly high of $22.87 in March 2024. The ensuing LINK decline has been contained inside a descending parallel channel and is likely an A-B-C structure (black).
If this is the right count, the correction ended on Aug. 5, validating the channel’s support trend line and the $8.70 horizontal and Fib support.
The higher low in September also supports this option. However, Chainlink’s price needs to move above the channel’s midline to validate the bullish price prediction further.
The three-day Relative Strength Index (RSI) and MACD indicator align with this possibility since both have generated bullish divergences (green). However, neither have crossed above this bullish threshold.
If the RSI breaks out from its resistance trend line and moves above 50, it will go a long way in confirming the correction is over. Then, a Chainlink price increase above the channel’s resistance trend line will confirm it.
LINK Price Set to Rise
The Chainlink price movement since Aug. 5 is bullish and suggests the nearly five-month correction is over. Technical indicators and the wave count align with this assessment.
A LINK price breakout above the descending parallel channel will confirm this prediction. The positive news regarding the Chainlink-Fireblocks partnership could accelerate the positive trend.
