Key Insights:
- Chainlink unlocked 14.875M LINK ($216M) and deposited it to Binance.
- LINK faces strong resistance at $15, where 107M tokens are held
- 640,000 LINK were withdrawn from exchanges, signaling accumulation.
The blockchain analysis platform Spot On Chain revealed that Chainlink (LINK) released 19 million tokens worth 269 million USD throughout its quarterly release schedule on March 15.
The company stated that- Chainlink (LINK) unlocked 14.875 million LINK tokens, valued at $216 Million, from its non-circulating wallet. These tokens were subsequently deposited onto Binance.
Despite the significant unlocking event, LINK price stagnates in a range around $14 mark, noting a decline over 2.30% in the past 24 hours.
Long-term holders displayed accumulation activity as 640,000 LINK tokens withdrew from exchange platforms. At that specific period the market value of $15 acted as a crucial hurdle. The circulating supply exceeds 107 million LINK tokens which belong to 15,500 investors.
Chainlink Unlocks $216M on Binance: What Happens Next?
The extensive unlocking of tokens typically produces market uncertainty as it frequently results in selling pressure outbreaks. An increase in supply during this period results in short-term price decreases.
Historical patterns indicate Chainlink prices rise during major token unlocking events. The recent distribution could cause another price shift similar to previous ones.
Investors maintain positive price predictions for LINK because nine out of ten previous token releases resulted in higher market values. Additional token distribution will impact market reaction which would then influence price performance.
Chainlink will strengthen its upward momentum provided ongoing market demand persists. When selling pressure surpasses buying interest the token might experience short-term volatility.
Bullish Sentiment Rises as Exchange Outflows Accelerate
Data from Santiment shows that 640,000 tokens left crypto exchanges during the past 24 hours. This movement confirms a positive market sentiment.
Large token movements through exchange platforms comprise accumulation strategies instead of distribution activities.
The LINK price can rise thanks to reduced supply despite continued high demand conditions in the market.
Data from Market Prophit supports the bullish perspective. Retail traders and Smart Money investors display optimistic sentiment.
Chainlink Price Prediction: Can Bulls Overcome $20 Hurdle?
Data from IntoTheBlock shows that, Chainlink price has a strong resistance placed around $20 mark. According to the analysis, 86.67 addresses have bought 144.23M LINK tokens at an average price of $18.23.
Moreover, 55% of the holders were making money at the current price levels. However, selling pressure had stabilized at press time.
Following the token unlocking event, exchange reserves declined significantly, signaling lowered volatility and liquidation risk.
Going forward, Chainlink price has recovered more than 15% this week and was striking the 20 day EMA trajectory. If LINK price succeeds in re-entering the channel’s lower trajectory of $16, a trend reversal could be seen ahead.
Data from CoinGlass shows that Open Interest (OI) shed over 6.85% to $485.32 Million. However, the OI-weighted funding rate turned positive to 0.0082% hinting at a significantly higher demand for the long contracts.
The immediate support zones were $12 and $11.20, whereas the resistance zones were $16 and $18.70.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.