- Ankr Protocol token soared after partnership with Microsoft.
- Historically, crypto tokens tends to rise after partnering with big companies.
- The coin will likely see a pullback as profit harvesting sets in.
Cryptocurrencies and stocks remained on edge on Wednesday as a somber mood engulfed the financial market. Bitcoin remained significantly below its weekend high of over $25.300. However, a look at data compiled by CMC shows that several coins are doing well. ANKR price has soared to the highest point since August last year while Stacks and Zilliqa jumped by over 10%.
Ankr and Microsoft partnership
Cryptocurrencies tend to jump sharply after partnering with large companies. For example, recently, we saw Hedera Hashgraph’s HBAR price jump after it added Dell to be part of its governance council. Similarly, Algorand jumped when it partnered with FIFA. These partnerships tend to validate their overall thesis.
Ankr price soared after it announced a partnership with Microsoft, the third-biggest company in the world. The deal will see Ankr use Microsoft computing tools to scale its infrastructure projects. At the same time, the two companies will seek to support companies and other organizations with blockchain node hosting services. This will be done through Microsoft Azure, the second-biggest cloud computing service in the world. In a statement, Rashmi Misra of Microsoft said:
“Many developers and organizations are exploring how Web3 can help solve real-world business challenges, and our partnership with Ankr will enable them to access blockchain data in a reliable, scalable, and secure way. Together with Ankr, we are building a strong Web3 infrastructure layer.”
Implications for Ankr tokens
The main implication for Ankr token is the ongoing rebound that has seen it soar to the highest level in seven months. In all, the coin has jumped by over 255% from its lowest level in 2022, making it one of the top performes in the industry.
Read more: How to buy Ankr tokens.
Therefore, Ankr price jumped because of the hype surrounding the Microsoft deal and the view that the partnership will grow its ecosystem. However, historically, these post-news parabolic moves tend to be short-lived since traders usually move past them within a short period.
Also, in some cases, companies like Ankr send embargoed news about major partnerships. Media companies are not supposed to publish the reports before the embargo time. As such, at times, we usually see media and other insiders buy in advance, which pushes prices higher.
Still, fundamentally, Ankr Protocol has been doing well, especially because of its liquid staking infrastructure services that support platforms like Lido. Lido has grown to become the biggest DeFi platform in the world with billions in assets.
Ankr has also recently helped BNB Chain expand its offerings at a better pace. Because of its RPC solutions, BNB is now faster and more efficient than what it was before. Developers also see less disk storage costs.
Ankr price technical analysis
Ankr Protocol’s price has been in a slow bullish trend in the past few days. Even before the Microsoft deal, the coin was already above the 23.6% Fibonacci Retracement level. It reached the 50% retracement pount after he positive news.
Ankr’s bullish comeback is also being supported by the 25-day and 50-day moving averages. It is also sitting at an important resistance level that was the highest point on August 12. Therefore, I suspect that the Ankr willl pullback slightly in the coming sessions as investors sell the fact. This retreat could see it drop to the support of $0.04.
The bullish trend will continue if the coin manages to move above the key resistance point at $0.057, the highest point this week.
