Chainlink Loses Key Price Support as Bitcoin Shatters $10,000 Resistance

The central theses

  • Chainlink has partnered to showcase its technology in the banking system
  • A new Chainlink partnership has sparked no interest among investors with LINK to fall below an important level of support
  • If selling pressure continues to rise, LINK would likely drop to USD 6 and support

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Chainlink is to build a bridge between the banking system and the DeFi area thanks to a new partnership. Despite the importance of the announcement, traders are shedding their LINK for BTC to catch part of the current bull rally.

Chainlink is targeting the Korean banking system

Chainlink made headlines after teaming up with the Hyperledger-based CenterPrime project. The idea behind the partnership is to share exchange rate data from some of the leading Korean banks with the DeFi market sector.

By implementing LINK's decentralized oracle technology, blockchain-based fintech applications can create their own projects, the price of which is for the South Korean won KRW.

“This integration with Chainlink marks a major breakthrough for the Korean fintech industry. For the first time in history, applications can access decentralized exchange rates put together by the best banks in Korea. " read the press release.

Release of decentralized FX data via Chainlink from CenterPrime
Distribution of decentralized FX data via Chainlink from CenterPrime

Sergey Nazarov, the CEO and co-founder of SmartContract.com, approved CenterPrime focuses on working with the Korean banking industry. The collaboration will therefore demonstrate that banks have a real chance to join the “smart contract revolution”.

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“I think banks can take part in the intelligent contract revolution and blockchain. How they will reinvent the global financial system is to provide various data and services for these financial products, ”said Nazarov.

The announcement caused a stir at Chainlink, but has not stopped LINK's downward trend after Bitcoin's 8% surge in the past 24 hours.

LINK prices seem to be declining

Since the all-time high of nearly $ 9 on July 15, the decentralized oracle token has entered a correction phase in which its price fell 27%. The sudden drop in LINK prices coincides with the $ 10,000 bitcoin outbreak. At the moment, BTC is on the move and has won $ 1,000 in the past 48 hours. Traders drop their Chainlink tokens to receive part of the action on Bitcoin.

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The downward movement in price appears to have been predicted by the TD sequence indicator. This technical index presented a sell signal on LINK's 3-day chart, which was confirmed by an increase in sell orders. Due to the intensive sale, Chainlink fell below the Fibonacci retracement level of 23.6%.

Chainlink US dollar price chart "width =" 2694 "height =" 1364
LINK / USD on TradingView

The loss of this crucial support area would likely result in further losses as the next support layer behind this old coin is around $ 6. Here the IntoTheBlock model "In / Out of the Money Around Price" shows that over 4,400 addresses had previously bought more than 12.4 million LINK.

Holders within this price range would likely help Chainlink to recover as they may try to stay profitable in their long positions by doubling and buying. A fall to the price range of $ 5.9 to $ 6.1 would likely be followed by a recovery and consolidation between $ 5.9 and $ 7.7.

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In / Out of money at the price of IntoTheBlock

If this scenario turns out, Chainlink could rise again towards the most significant resistance barrier, which is between $ 7.52 and $ 7.73. The IOMAP cohorts show that almost 10,800 addresses bought around 16 million LINK at this price level.

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