Chainlink Wins U.S. Govt Data Deal: Is LINK Aiming at $50?

The U.S. government announced today that it is ready to embrace blockchain technology to start sharing economic data and it has tapped Chainlink as a key partner to achieve this goal.

The project explained the details of this collaboration in a blog post published on its official website.

Through its Data Feeds solution, data from the Bureau of Economic Analysis (BEA) will now be available on-chain. This includes six data points that include the U.S. gross domestic product, Personal Consumption Expenditures (PCE) index, and more.

LINK Recovers While PYH Trading Volumes Skyrocket by 3,000%

Chainlink (LINK) recovered from an early loss after the news came out and it has now jumped to a 1.5% gain in the past 24 hours during a session where top altcoins have been retreating.

Trading volumes have jumped by nearly 100% as LINK touched a key weekly resistance level as well that we highlighted in a previous Chainlink price prediction.

LINK/USD Weekly Chart (Coinbase) – Source: TradingView

Meanwhile, the price of the native asset of the Pyth Network (PYTH) skyrocketed by 49% as the U.S. government tapped this project as well. Trading volumes for this one surged by more than 3,200% in the past 24 hours following the news.

In our previous prediction article on LINK, we emphasized that the token was about to hit a key weekly trend line resistance from years ago and that this touch could result in a big move.

Trading volumes confirm the relevance of this resistance level as they skyrocketed both on the news and also as LINK tagged this area. The price quickly retreated off those highs but this is bullish news that propelled another token – PYTH – and that could have a similar bullish impact on LINK in the near term.

Huge Credibility Boost Could Push LINK to $50

Why was LINK’s uptick much more subtle compared to PYTH?

On the one hand, the market cap of LINK is 16 times higher than that of its rival at $16 billion. Hence, it takes a lot of ammunition to produce that kind of double-digit move in an asset of that size.

In addition, weekly resistances are quite relevant from a technical standpoint and the volume of sell orders at that level was likely high.

Chainlink Official X Post – Source: X.com

Nonetheless, I expect that this latest retreat should just be a temporary hiccup and that LINK should easily break through that resistance line in the next few days as momentum gains traction.

Being tapped by the U.S. government is a huge credibility boost for Chainlink as a key piece of the puzzle in the adoption of blockchain technology for real-world use cases. Its price oracles can power trading systems, stock exchanges, and foster a new era for TradFi.

Hence, regardless of this mild reaction in the near term, this is the kind of news that could trigger the beginning of a sustained uptrend.

If LINK breaks above $28, we may expect a progressive move toward its nearest area of resistance – its all-time high of $52.88 from May 2021. Altcoin season has begun. Ethereum (ETH) and BNB Coin (BNB) have paved the way. LINK could be next.