Chainlink Maintains $12 Support Despite Unlocking of 11.25 Million LINK Tokens

Summary:
Chainlink (LINK) has recently managed to hold the $12 support level despite a significant unlock of 11.25 million LINK tokens. This article explores the impacts of the token movements on market dynamics and the potential future price trajectory of LINK.

Key Takeaways

Chainlink's price is currently around $12.5, having rebounded from a drop to $11.7.
The unlocking of 11.25 million LINK tokens from a non-circulating supply wallet showed significant transfers to exchanges.
Exchange activity reflects higher inflows than outflows, indicating selling pressure.
Despite these conditions, LINK is holding steady at the $12 support level, signaling potential buyer interest.

Understanding Chainlink's Current Market Position

Chainlink is currently trading within a declining price channel after facing a resistance near $23 two months ago. As of now, LINK experienced a modest recovery from a dip to $11.7, currently hovering around $12.5. Nevertheless, it remains down 8.78% weekly and 9.25% monthly, indicating ongoing downward pressure.

Unlocking of Chainlink Tokens

Recent data from Onchain Lens revealed that Chainlink's non-circulating supply wallet unlocked 11.25 million LINK tokens. Out of this total, 9.23 million LINK—worth approximately $116 million—was transferred to Binance in two separate transactions.

Chainlink Binance deposit

Of the transfers, approximately 5.22 million LINK was sent in one transaction, while another moved close to 4 million LINK. The remainder, totaling 2.02 million LINK valued at about $25 million, was transferred to a multisig wallet linked to Chainlink. This was the first significant activity from this wallet in over two months, with historical data suggesting such large deposits often lead to selling pressure.

According to CryptoQuant, the exchange activity reflected significant token movements, highlighting that Exchange Inflows rose to 10.2 million LINK, while Outflows were only 1.1 million.

Chainlink exchange netflow

As a result, Exchange Netflows surged to approximately 9.1 million LINK, marking a two-month peak. However, these Netflows later decreased to around -117,000 LINK, indicating that selling pressure may have eased after the initial influx of token deposits.

Market Dynamics: Buyers Intervene at $12

Despite the significant movements towards exchanges, LINK has held the $12 support level, preventing a further market downturn. Buyers started to enter the market on this dip, with Coinalyze reporting a Buy Volume of about 3.5 million LINK compared to 3.2 million in Sell Volume. This higher Buy/Sell Delta of around 300,000 LINK is the first positive shift observed in two weeks, signaling a potential improvement in short-term demand.

Chainlink buy sell volume

Due to these dynamics, Chainlink's Stochastic Relative Strength Index (RSI) showed a bullish crossover, rising to 23, though it remains in oversold territory.

LINK Stoch RSI

This crossover indicates increasing buying momentum, although it does not yet confirm a trend reversal. If buyers continue to support the $12 level, LINK might attempt to rebound towards $13.02, with stronger resistance appearing near $13.7. However, should it fail to maintain this support, the price could fall toward $11, with $10.9 identified as a crucial level.

Final Thoughts

As Chainlink navigates these turbulent market conditions, the ability to sustain the $12 support level will be critical in determining its next price movements. Engaged buyers and the overall trading environment will play significant roles in shaping Chainlink's trajectory.