In a groundbreaking move, traditional finance and the crypto industry are set to converge as Swift and Chainlink announce their collaboration to usher in a new era of interoperability. The partnership, aimed at testing connections between major financial institutions and multiple blockchain networks, seeks to revolutionize both realms’ efficiency, cost reduction, and liquidity.
Swift, the internationally renowned interbank messaging system, is at the heart of this pioneering experiment, and Chainlink is a leading provider of real-world data to blockchains. The duo plans to bridge the gap between traditional finance and the crypto sphere, establishing seamless connections between dozens of financial institutions and diverse blockchain networks.
The list of companies that participated in these groundbreaking tests, includes big names like BNP Paribas, BNY Mellon, Citi, and Lloyds Banking Group, among others. The collaboration aims to explore the feasibility of using Swift’s infrastructure to facilitate the transfer of tokenized assets across various blockchains. This move could transform the landscape of capital markets.
With its critical connectivity across public and private blockchains, Chainlink is poised to drive this leap in blockchain interoperability. The move holds significant implications not only for financial institutions but also for the cryptocurrency sector itself. Sergey Nazarov, the co-founder of Chainlink, believes that involving banks, which currently hold the lion’s share of global capital, is paramount for the crypto industry to exceed the single-digit trillion mark and reach a staggering $10 trillion market capitalization.
The collaboration between Swift and Chainlink to explore blockchain interoperability with major financial institutions could potentially have a positive impact on the price of Chainlink (LINKUSD) as it may drive increased interest and adoption in the cryptocurrency sector, potentially leading to a bullish trend in the market.
Chainlink (LINKUSD) is currently trading at $7.6012081, showing a decline of 3.67% in the last 24 hours. Chainlink has a total market cap of $4,088,931,783 and a 24-hour trading volume of $295,415,679. It is currently the 20th most valuable cryptocurrency on CoinMarketCap. With its current market position and price levels, Chainlink is a strong contender in the crypto space.
Since bouncing off the $6.30 support, LINK has struggled to overcome resistance around the $9.5 level on the daily chart. This resistance coincides with the 21-day exponential moving average, which has been capping upside throughout the recent consolidation period. The relative strength index (RSI) has also recovered from oversold below 30 to a more neutral level around 50, suggesting waning downside momentum.
The moving average convergence divergence (MACD) indicator attempts to cross above the signal line into bullish territory, potentially signaling a trend reversal. The chart suggests that LINK is likely range-bound between support at $5.00 and resistance around $9.5. A decisive break above $8 and the 21-day EMA on expanding volume could open the door for a retest of $9.50. Alternatively, failure to hold the $6.30 support level could see Chainlink dip to around $4.30.
