- Chainlink teams up with Saudi Awwal Bank to promote blockchain applications within Saudi Arabia.
- These applications will utilize Chainlink’s capabilities in cross-chain connectivity and its application runtime environment.
- Despite the announced collaboration, Chainlink’s market value did not experience an upward trend.
Chainlink (LINK) has entered into an agreement with Saudi Awwal Bank (SAB), a leading financial institution in Saudi Arabia, with the aim of expanding the presence of on-chain financial services within the country. While this partnership is expected to facilitate more adoption of Chainlink’s technology, the price of the LINK token did not see a corresponding increase; it remained largely unchanged on the day of the announcement and has decreased by over 2% over the past week.
Saudi Awwal Bank Enters Blockchain Arena Through Chainlink Partnership
Saudi Awwal Bank, a major banking entity in Saudi Arabia with assets exceeding $100 billion, publicly announced its alliance with Chainlink this Monday, signifying its initial foray into on-chain finance solutions. The Innovation Co-operation Agreement will allow SAB developers to harness Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and the Chainlink Runtime Environment (CRE).
The CRE is designed to offer a versatile platform for crafting applications and accessing diverse Application Programming Interfaces (APIs), while the CCIP will streamline secure asset and data transfers across different blockchain networks.
According to Chainlink’s official records, the CCIP is actively supporting 60 distinct blockchain networks, having facilitated a total transfer volume of $4.34 billion, and securely manages cross-chain token assets valued at over $38.77 billion. Furthermore, DeFiLlama recognizes Chainlink as the premier decentralized oracle network, based on a Total Value Secured (TVS) of over $62 billion.
CCIP activity. Source: Chainlink
Demonstrating further commitment to financial technology, SAB revealed another agreement with Wamid, a part of the Saudi Tadawul Group, to start exploring the tokenization of capital markets. These markets are valued at approximately $2.32 trillion, as reported in Tuesday’s Saudi Exchange report.
These partnerships align with Saudi Arabia’s Vision 2030 initiative, spearheaded by Crown Prince Mohammed bin Salman, which seeks to diversify the nation’s economy away from its reliance on crude oil revenue.
Chainlink’s Price Consolidates Above Key Support Level as Bullish Enthusiasm Cools
As of Wednesday, Chainlink is trading above $23.00, maintaining its position above the 61.8% Fibonacci retracement level. This level, at $22.98, is calculated from the high of $30.94 on December 13 to the low of $10.10 on April 7 and is acting as a critical support area for the cryptocurrency.
Following the appearance of a Doji candlestick pattern on Tuesday, the price action of the LINK token suggests the possibility of a V-shaped recovery. If the price of the oracle token increases, it might target the 78.6% Fibonacci retracement level at $26.48.
Technical indicators on the daily chart reveal a decline in momentum, with the Relative Strength Index (RSI) oscillating around the midpoint at 51. Furthermore, the Moving Average Convergence Divergence (MACD) line has stabilized after dipping below its signal line, signaling a reduction in bullish sentiment.
LINK/USDT daily price chart.
Conversely, should Chainlink’s price fall below $22.98, it could potentially trigger a further descent towards the 50% Fibonacci retracement level, situated at $20.52.