Key Takeaways:
- Oracle Network Chainlink announced two new partnerships on Oct 14.
- Its native token LINK jumped 11% in response.
YEREVAN (CoinChapter.com) – LINK was one of the biggest gainers Thursday as its prices rallied 11% in the wake of Chainlink’s partnership with Pods’ Option AMM and Bonded Finance.
The upside move appeared on prospects that LINK’s utility would grow following Chanlink’s latest tie-ups, given it serves as a payment and staking token to run the decentralized oracle feeds network. Meanwhile, the rally also surfaced due to an overall boom across the cryptocurrency market, which saw leading digital asset Bitcoin jump above $58,000.
Partnerships, detailed
As announced, Pods’ Options will use Chainlink’s price feeds to power their Options-Specific automated market maker (AMM) algorithm to generate accurate prices on options contracts.
With Pods, hedging market risk has never before been so easy for the end-user. […] Our integration with Chainlink helps enable composable, continuous, and decentralized risk management, which is vital for DeFi hedging.
said the Pods’ Options team.
Meanwhile, Bonded Finance will use live data from Chainlink to provide real-time altcoin collateralization and liquidation ratios for stablecoin loans. In addition, the company’s Primary Lending Facility will utilize the data for all the listed altcoins.
Related: Chainlink partners with Polytrade and Leonicorn, but LINK won’t budge
Paul Mak, the founder and chief executive of Bonded Finance, commented”
Having a verifiable source of truth can be the difference between getting liquidated and securing a profitable investment. As we venture into creating customized price feeds for genuinely alternative assets, Chainlink Price Feeds were the go-to choice in helping us claim “veracity” when assessing interest rates and loan-to-value ratios.
said the CEO.
LINK daily chart
The LINK/USD exchange rate stood at $27.60 in the European session Thursday. Meanwhile, the pair formed a bullish pattern known as the Inverse Head and Shoulders, with its price target lurking near $38.
In detail, the inverse Head and Shoulders pattern surfaces when the price forms three consecutive dips, connected with a mutual resistance line (neckline). The middle dip is the lowest, and it is the ‘head’ of the formation. The other two higher dips on either side are the shoulders.
The pattern predicts an uptrend after the price action crosses over the neckline. Moreover, the uptrend might be as high as the distance from the head to the neckline ($38 for LINK). As the current price stands right at the neckline, the upcoming sessions will show if the prediction has merit.
Also read: Chainlink scores a new collaboration as LINK struggles to get past $24
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