Chainlink scores a new collaboration as LINK struggles to get past $24

chainlink xcarnaval link bitcoin
“Chains” by h20tubig is licensed under CC BY-NC-SA 2.0

Key Takeaways:

  • Chainlink scored a collaboration with XCarnival lending protocol.
  • LINK consolidated instead of responding to the positive news.

YEREVAN (CoinChapter.com) – LINK, the native token of oracle network Chainlink managed a 5 percent uptrend, after losing 16 percent in compliance with the Bitcoin-led market correction. However, it still had trouble getting past resistance at $24, despite Chainlink’s new collaboration with a lending aggregator XCarnival.

Chainlink is going to provide XCarnival with “real-time, tamper-proof, high-quality” data on various crypto-assets and their prices. The announcement came on Tuesday, with details on the lending/borrowing protocol’s plans to utilize the oracle’s data.

The lending/borrowing protocol provides “innovative liquidity solutions” for NFTs and “long-tail” crypto assets. By integrating Chainlink’s real-time digital asset data, XCarnival hopes to provide its clients with more security against flash crashes and data manipulation attacks.

XCarnival noted several reasons for choosing Chainlink over other available options. The lending platform believes that the oracle network provides high-quality data from premium information aggregators and has broad market coverage.

Chainlink’s data aggregation model generates accurate global market prices that are inherently resistant to inaccuracies or manipulation of any single or small set of exchanges.

mentioned the announcement.

Security was also among the reasons to prefer Chainlink. The lending protocol emphasized the significance of qualified developers behind the oracle. XCarnival also stated that Chainlink’s nodes are “security-reviewed and Sybil-resistant”.

While the news signify the growing adoption of the oracle network, LINK didn’t hurry to respond. It rather mimicked Bitcoin’s price action, with a small rise on Tuesday after the Monday crash.

Also read: Chainlink’s growing adoption and Bitcoin’s recovery sent LINK up 15%

Oracle Network’s daily chart

In hindsight, LINK has been responsive to the blockchains collaborations in the past. It leaped over 23 percent after Swiss Bank added the oracle network to its investment service offers in mid-August. The same happened in early September with Fleta Connect and Neuramon collaborations.

This time the digital asset put on just under 5 percent after the Bitcoin-led crash on Monday. However, despite the efforts, it still had trouble breaking over a significant resistance at $24.3. LINK/USD pair traded at $23.6 in the London session Tuesday.

Chainlink struggles to break the resistance. Source: LINKUSD on TradingVIew.com
Chainlink struggles to break the resistance. Source: LINKUSD on TradingVIew.com

Moreover, the recent bearish price action left a looming death cross on the daily chart. The trajectory of the 20-day exponential moving average (EMA-20; blue wave) corrected south to possibly meet the 50-day simple moving average (SMA-50; red wave). If the death cross does happen, LINK could expect more losses until EMA-20 manages to take a dominant position over the SMA-50.

Should LINK break through the mentioned resistance, it could retest the same line as support, continuing the bullish trend. If not, then the digital asset has more support lines to retest at $20.0 and $19.2.

Also read: LINK jumps 10% in 24 hours as Chainlink partners with Fleta Connect and Neuramon

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