LINK Price Expected To Remain Stable After Massive Token Unlock

Earlier today, 18.75 million Chainlink (LINK) tokens were unlocked and transferred out by 4 non circulating wallet addresses, according to posts shared by on-chain analytics platforms Wu Blockchain and Spot On Chain. According to both posts, the unlocked LINK tokens were worth about $117 million to $119 million.

4 Chainlink Noncirculating Supply wallet addresses unlocked and transferred out 18.75 million LINK (approximately $119 million) today, of which 15.7 million were transferred to Binance, according to @EmberCN

These addresses also unlocked 21 million LINK 3 months ago, which…

— Wu Blockchain (@WuBlockchain) September 16, 2023

Spot on Chain also shared that 15.7 million of the unlocked LINK tokens, worth $95 million, were deposited to Binance. Afterwards, 3.05 million LINK remained in the 0xD50f address.

🚨 18.75M $LINK ($117M) was unlocked from 4 Chainlink: Noncirculating supply contracts 6hrs ago, of which:

– 15.7M $LINK ($98M) was deposited to #Binance
– 3.05M $LINK ($19M) remains in multisig 0xD50f

Notably, 82.75M $LINK has been unlocked since Aug 2022, of which 71.8M $LINK… pic.twitter.com/lqooYQKPt9

— Spot On Chain (@spotonchain) September 16, 2023

It is worth noting that since August 2022, a significant amount of 82.75 million dollars worth of LINK tokens has been unlocked, of which 71.8 million dollars worth of LINK was subsequently deposited to Binance. Notably, the price of LINK has demonstrated stability even in the face of these substantial token unlocks in the past.

This seems to be the case again as LINK’s price managed to climb by more than 2% over the past 24 hours, according to CoinMarketCap. As a result, LINK was trading at $6.29 at press time, which was a slightly closer to its 24 hour peak of $6.41 than its daily low of $6.11.

In conjunction with its price rise, the 24-hour trading volume of LINK experienced a 3.26% increase over the past day, bringing it to a total of $130,358,970. Furthermore, LINK’s recent favorable price movement has propelled its weekly performance into positive territory, taking it to +0.73%.

Daily chart for LINK/USDT (Source: TradingView)

From a technical perspective, a significant medium-term bullish flag may be triggered on LINK’s daily chart soon. At press time, the 20-day EMA line was closing in on the 50-day EMA line. If these two technical indicators cross, it will signal that medium-term momentum has shifted in favor of bulls.

If this technical flag is validated, then LINK’s price may attempt a challenge at the $7.331 threshold in the coming couple of weeks. An early confirmation of this bullish thesis will be if LINK’s price closes a daily candle above $6.480.

However, failure to close a daily candle above this resistance level in the next 72 hours may put the altcoin at risk of falling to the next support level at $5.706. Thereafter, continued sell pressure may result in LINK’s value dropping to $5.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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