- Chainlink price correction gives a bearish breakdown below the $15.5 neckline support of a head-and-shoulders reversal pattern.
- FTSE Russell partners with Chainlink to bring its $18 trillion benchmark index data on-chain via DataLink.
- Since June 2023, an ascending trendline has been maintaining a slow, yet steady uptrend in the LINK token.
LINK, the native cryptocurrency of the decentralized oracle network Chainlink, plunged over 13% on Monday to reach a $15.33 trading value. The sell-off followed the broader market pullback and sharp liquidation across the crypto market. Despite the sharp decline, Chainlink’s underlying utility continues to strengthen following its new collaboration with FTSE Russell.
FTSE Russell Enters Blockchain With Chainlink-Powered Index Data Publishing
FTSE Russell, a market leader in global index fund management, is now bringing its benchmark information directly on blockchains, becoming the first global index fund manager to enter on-chain markets via its new Chainlink integration with DataLink. The partnership allows the decentralized and traditional financial systems to gain access to some of the most well-known market indexes across the globe in real time.
In the effort, FTSE Russell, in its range of indexes such as Russell 1000, 2000, 3000 and FTSE 100 benchmarks, WMR FX benchmarks, and digital asset indices, will be made available on various public and private blockchains. Through DataLink, an institutional-grade layer of publishing aimed at providing verifiable, secure, and tamper-resistant delivery of data, 2,000 or more Chainlink ecosystem applications are able to use the data.
FTSE Russell, the benchmarks that are utilized to track over $18 trillion of funds under supervision, becomes part of a growing list of financial data vendors deploying data on-chain via Chainlink infrastructure. Fiona Bassett, CEO at FTSE Russell, says, “We’re excited to bring our index data onchain using Chainlink’s institutional-grade infrastructure. This marks a major step in enabling innovation around tokenized assets, ETFs, and next-generation financial products”
DataLink is a turnkey platform to enable data owners to publish their datasets on-chain without needing to build new technical infrastructure. The system is supported by the Chainlink infrastructure, which has transacted more than 25 trillion worth of transactions and has secured almost 100 billion in the total value locked in DeFi.
Chainlink co-founder Sergey Nazarov termed the development a massive achievement, writing that FTSE Russell introducing its verified benchmarks to blockchains through Chainlink is a turning point within the sector. He also included that the integration shows that DataLink enables the delivery of institutional-grade financial data in blockchain markets securely and reliably by providers of globally leading benchmarks.
This partnership may also enhance Chainlink as the default data layer of on-chain finance, which may increase the use of its LINK token.
LINK Price to Extend Correction Amid Reversal Pattern Breakdown
Since last week, the Chainlink price has recorded a brief pullback from $18.83 to $15.45, accounting for a 19% loss. The pullback, when analyzed in the daily chart, shows the completion of a head and shoulders pattern.
The chart setup is characterized by three threshold crest waves, named the right shoulder, head, and left shoulder. Amid the recent market correction, the LINK price gave a decisive breakdown below the $15.54 neckline support, signaling the continuation of the bearish trend.
If the breakdown holds, the coin price is poised for a 21% fall to test a long-term support trendline at $12.14. Since June 2023, this trendline has acted as a major accumulation zone for buyers to recoup their bullish momentum before the next leap.
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