The US government teams up with Chainlink and Pyth Network: economic data on-chain ignites the Oracle Machine zone, with a LINK target of $50.

The U.S. government has officially announced the adoption of Blockchain technology to release economic data and has selected Chainlink as its core partner. This milestone event has driven Chainlink (LINK) to rise 1.5% against the trend, while Pyth Network (PYTH) has experienced a big pump of 49%, with volume surging by 3200%. This cooperation means that key economic indicators such as GDP and personal consumption expenditures index from the Bureau of Economic Analysis (BEA) will be brought on-chain through Chainlink's data feed solutions, opening up a new path for the integration of TradFi and Blockchain.

[Details of Government Cooperation and Strategic Significance]

According to the cooperation details published by Chainlink's official blog, the U.S. Bureau of Economic Analysis will first put six core economic data sets on the blockchain, including key macroeconomic indicators such as Gross Domestic Product (GDP) and Personal Consumption Expenditures Index (PCE). This cooperation not only brings unprecedented official endorsement to the blockchain industry but also marks the beginning of the U.S. government's substantial use of blockchain technology to enhance data transparency and transmission efficiency. The Pyth Network has also received official recognition, and a dual oracle pattern is taking shape.

[Market Response and Trading Data]

In the context of a general correction in mainstream altcoins, LINK achieved a counter-trend rise of 1.5%, with volume surging nearly 100%. Even more astonishing is the performance of Pyth Network, with PYTH price seeing a big pump of 49% in a single day and volume skyrocketing by 3200%, indicating strong market recognition of the positive government cooperation news. Technical analysis shows that LINK is testing a key weekly trend line resistance, a position that has been suppressing price breakout since it formed several years ago.

[Technical Breakthrough and Price Target]

(Source: TradingView)

Although the LINK rise is relatively moderate (with a market cap of 16 billion USD, which is 16 times that of PYTH), breaking through key resistance levels may open up greater upward potential. If it successfully breaks through the 28 USD resistance, the next target will point to the historical high of 52.88 USD set in May 2021. The volume surged simultaneously when the news was announced and during the testing of resistance levels, confirming the importance of this technical position. Although the price has slightly retreated from its peak, this may be a consolidation process before the breakout.

[Industry Impact and Fundamental Value]

Gaining recognition from the U.S. government brings a significant boost in credibility for Chainlink, and its price oracle technology will become a key infrastructure for the integration of the traditional financial system with Blockchain. This collaboration can not only support the operation of trading systems and stock exchanges but may also usher in a new era for traditional finance (TradFi). Although the short-term market reaction has been relatively restrained, such substantial positive news often triggers the beginning of a sustained rise trend.

[Altcoin Season and Sector Rotation]

The current altcoin season has started, with mainstream coins like Ethereum (ETH) breaking through first to pave the way for sector rotation. LINK may become the next leading asset. Unlike projects that rely solely on market speculation, Chainlink and PYTH have an irreplaceable competitive advantage through government collaborations, and this substantial improvement in fundamentals will support long-term value growth.

[Conclusion]

The cooperation between the US government departments and Chainlink, Pyth Network marks the official national recognition of the blockchain oracle track, which is a milestone for the entire industry. Investors should pay attention to the long-term investment opportunities brought by such fundamental positive news, rather than just short-term price fluctuations. As the process of traditional economic data going on-chain accelerates, the actual value and market demand of oracle projects will be further validated, and LINK breaking through historical highs may just be a matter of time.