Chainlink Drops 57% Despite Major Partnerships

Chainlink, the largest oracle in the cryptocurrency industry, has experienced a significant price decline in recent months, mirroring the performance of many other altcoins. Currently trading at $13.12, Chainlink (LINK) has fallen 26% from its peak in May and 57% from its November high. This downturn is notable given the recent positive developments for the company, including a major partnership with Mastercard, the second-largest payment processor globally. This collaboration aims to enable direct crypto purchases using cards, with Chainlink providing verification and synchronization solutions. Other companies involved in this partnership include Shift4 Payments and Uniswap (UNI).

Chainlink is also poised to play a crucial role in the growing stablecoin industry through its Proof of Reserve solution, which helps companies provide accurate data on their holdings. The company has continued to form partnerships with major global entities, including JPMorgan, UBS, Swift Network, and ANZ Bank. Additionally, Chainlink has announced a partnership with Aktionariat, an equity tokenization platform with over 30,000 registered investors. This collaboration utilizes Chainlink's Cross-Chain Interoperability Protocol to enable secure, cross-chain treasury accounts. Chainlink has also joined the xStocks Alliance, becoming the official oracle provider alongside companies like Kraken, Solana, Alchemy Pay, Jupiter, and Raydium. Its Oracle solutions will facilitate the availability of tokenized stocks to investors worldwide.

Despite these positive developments, on-chain data presents a mixed outlook for Chainlink. Santiment data indicates that the number of LINK tokens on exchanges has decreased from 212 million to 208 million, suggesting a reduction in selling pressure. Additionally, the Mean Dollar Invested Age (MDIA) has been rising, reaching a high of 129.50 from a low of 110 in April. This increase in MDIA suggests that investors are holding onto their tokens, which is generally seen as a bullish sign. However, the technical analysis of the LINK price shows mixed signals. The token has formed a double-bottom pattern at $10.9 and a neckline at $17.90, which is typically a bullish indicator. If this pattern holds, the initial target could be $17.90, followed by the psychological point at $20. Conversely, the token remains below the 50-day and 100-day Exponential Moving Averages, indicating a persistent bearish trend. It has also formed an inverse cup-and-handle pattern, suggesting potential further declines to $10 if the bearish trend continues. The key level to watch is $10.91, as a break below this level would confirm a bearish breakdown and point to further downside.