Chainlink’s recent market activity has seen the cryptocurrency navigating a descending price channel after facing rejection near $23 two months ago. As of now, LINK has managed to rebound from a dip to $11.70 and is trading close to $12.50. However, the altcoin has experienced a weekly decline of 8.78% and a monthly drop of 9.25%, indicating sustained downward pressure.
In a notable development, the non-circulating supply wallet of Chainlink has unlocked a substantial amount of tokens. Recent reports from Onchain Lens indicate that this wallet released 11.25 million LINK tokens, with approximately 9.23 million LINK, valued around $116 million, being deposited into the Binance exchange in two separate transactions. One transfer involved around 5.22 million LINK, while the other moved nearly 4 million LINK. Additionally, the remaining 2.02 million LINK, worth about $25 million, was sent to a multisignature wallet connected to Chainlink.
This release marked the first significant movement from the wallet in over two months, and history suggests that such large deposits into exchanges often precede potential selling activities. Data from CryptoQuant illustrated increased exchange activity, highlighting that Exchange Inflow surged to 10.2 million LINK, while Outflow remained relatively low at 1.1 million LINK. Consequently, Exchange Netflows spiked to approximately 9.1 million LINK, a peak not seen in two months; however, these netflows later retracted and were reported at -117,000 LINK.
Interestingly, despite the heavy influx of tokens into exchanges from the unlocked supply, LINK has managed to maintain the critical support level at $12, breaking through the potential for a market breakdown. Buyers showed a willingness to step in, with Chainlink recording a Buy Volume of 3.5 million compared to 3.2 million in Sell Volume, resulting in a positive Buy/Sell Delta of around 300,000 LINK — the first of its kind in two weeks. This shift indicates a growing short-term demand.
As a sign of potentially strengthening buying momentum, Chainlink’s Stochastic Relative Strength Index (RSI) made a bullish crossover, rising to 23 while still showing oversold conditions. This crossover indicates that if buyers continue to defend the $12 support level, LINK could see a rebound towards $13.02. A more substantial recovery might face resistance at around $13.7. However, should LINK fail to maintain the support at $12, it could open the door for further declines towards $11, with $10.9 identified as a critical support level.
In conclusion, large token unlocks can often put market sentiment to the test, and LINK seems to be facing this challenge near the $12 mark. The response from buyers suggests a degree of short-term confidence, but the possibility for sustained momentum will depend on the quick absorption of the excess supply in the market.
