TrueUSD issuer Archblock will use Chainlink’s proof-of-reserve

Chainlinks proof of reserve system to be used for the TrueUSD verification
TUSD is backed by Us dollars and it is the sixth largest stablecoin with the market capitalisation of the $966 million
LINK token price remains flat but golden EMA crossover is possible

Chainlink (LINK) token price is trading with bullish cues and bulls are trying to reclimb the price above the 200 day EMA to keep the positional trend in the direction of bulls.

Recently, Archblock, the issuer of TrueUSD stablecoin said that it will use Chainlink’s Proof-of-Reserve to enhance the transparency and verifiability of the stablecoin. Chainlink will ensure that the TUSD is always collateralized by the off-chain fiat reserves.

Currently, LINK/USDT is trading at $7.363 with an intraday gains of 1.22% and the 24-hour volume to market cap ratio at 0.0813

Will the LINK Token price benefit from TUSD verification?

Chainlink (LINK) token price seems to be very stable and consolidating in the wide range between $5.342 to $9.458 which shows that the long term investors are gaining confidence and expecting the price to breakout on upside for further expansion.

In the mid of January, LINK token price had managed to climb above the 50 day EMA which had triggered the positive sentiment and slowly prices picked up the upward momentum and succeeded to break out of the 200 day EMA and reversed the positional trend in the direction of bulls. However, from the past couple of days, prices took halt at $8.00 and forming a bearish rejection candle shows that the bears are getting active on the higher levels and $8.00 will act as an immediate hurdle for the bulls but if in coming months buyers succeed to breakout of the $8.00 hurdle then prices might begin the journey to reach $11.00 mark.

On the other hand, the technical indicators of the Chainlink like MACD had generated a negative crossover indicating mild bearishness but the RSI at 50 sloping upward denotes the equal level of tug of war between buyers and sellers. Moreover, the price action is bullish and indicating the price to reclimb the 200 day EMA in coming weeks. However, if prices slipped below the 50 day EMA then bears might try to drag it down toward $6.00 level.

Summary

Chainlink (LINK) token price is stuck into the wide range consolidation and prices does not show any signs of any big up move in the coming months. The technical analysis suggests that the prices are still in the bulls grip and any short term correction will have a high probability of bouncing back from the lower levels.

Technical levels

Resistance levels : $9.458 and $11.000

Support levels : $6.000 and $5.342

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.