Chainlink price formed a double-bottom pattern, pointing to a rebound as Swift made a major announcement on its tokenization drive.
Summary
- Chainlink crypto price has formed a double-bottom pattern.
- It has also formed a falling wedge, a popular reversal sign.
- The network will benefit from Swift’s tokenization drive.
Chainlink (LINK) token rose by 5.5% to $12.58, with its 24-hour volume rising by 20%. This rebound followed the developers’ announcement that they had partnered with more than 30 banks to build a blockchain ledger to support tokenized assets alongside existing financial systems.
This is a major announcement since Swift is one of the most important entities in the financial services industry today. Its messaging network connects over 11,500 financial services companies in 200+ countries.
It is estimated that Swift processes over $150 trillion in cross-border payments a year. As such, this figure means that the new ledger network being designed will have ready assets to move.
Chainlink will be a top beneficiary of this project due to its partnership with Swift. The two have been collaborating for many years, meaning that Chainlink will provide its technology.
Chainlink also has partnerships with several companies Swift is working with, including DTCC, Euroclear, UBS, Standard Chartered, and ANZ.
Meanwhile, Chainlink has continued its LINK buying spree as part of its strategic reserves. It bought over 92,000 tokens this week, bringing the total assets to 1.23 million. These tokens are now worth $15.3 million, a considerable amount for a project that launched in August.
Chainlink price technical analysis
Technical analysis suggests LINK may rebound in the coming weeks. It formed a double-bottom pattern at $11.77 and a neckline at $15, its highest point this month.
This double-bottom has formed after the token formed a large falling wedge pattern. A wedge is comprised of two descending and converging trendlines.
Therefore, the coin may rebound as long as it remains above the double-bottom point at $11.77. If this happens, the next key level to watch is the neckline at $15, about 20% above the current level.
However, a drop below the $11.7 support level will invalidate the bullish LINK forecast.
