Chainlink price drifted sideways on Wednesday even after partnering with one of the biggest companies in the world. LINK token was trading at $6.45, where it has been in the past few days. This price is about 28% below the highest level this month.
Chainlink and Tencent partnership
Chainlink, the biggest oracle network in the world, is ending May with a bang. In a statement, the company said that it was partnering with Tencent Cloud, one of the biggest companies globally.
The partnership will see the two companies collaborate to help Web3 developers with stable cloud services and tooling. Some of these solutions will be Cloud Virtual Machine and Elastic Kubernetes Service.
In addition, Chainlink developers will gain access to Real-Time Cloud Rendering, Anti-DDoS, and CDN solutions In a note, Poshu Yeung, the Senior Vice President at Tencent Cloud said:
“We recognize that secure and scalable infrastructure is critical to the development of the global Web3 ecosystem, which is why we’re glad to collaborate with Chainlink Labs, the industry-standard oracle network. By supporting developers with decentralized services and tooling, they’re able to build more robust and advanced applications.”
Read more: How to buy Chainlink.
Tencent Cloud is a service offered by Tencent Group, a company that is usd by billions of people. The company owns other popular services like Epic Games, WeChat, QQ, and Tencent Blockchain among others. Its cloud solution competes with the likes of Amazon AWS and Microsoft Azure.
Chainlink, on the other hand, provides oracle services that power some of the biggest projects in the world. It has a total value secured of over $19.9 billion. Some of the top dApps using Chainlink are Aave, Compound, Venus, GMX, and Liquity.
Therefore, this partnership will have a mutual benefit for the two companies. It will benefit Chainlink as it seeks to expand its portfolio of services. Also, it will benefit Tencent as it seeks to grow its blockchaiin business.
Chainlink price prediction
LINK price has moved sideways in the past few months. It has struggled moving above the year-to-date high of $9.51. At the same time, the coin has crossed the 50-day and 25-day exponential moving averages (EMA). It is also approaching the key support level at $5.2, the lowest point in November last year.
Chainlink’s volume has been low, signaling that there have been no major demand for the coin. Therefore, there is a likelihood that it will continue falling as sellers target the key support level at $5.2. A move above the resistance point at $7 will invalidate the bearish view.
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