Chainlink Unlock: $264 Million Worth Of LINK Tokens Sent To Binance, Will This Trigger A Crash To $10?

Be prepared as new LINK tokens continue to flood the market: Chainlink recently unlocked 21 million LINK tokens (worth $295 million) from five non-circulating supply contracts as part of its regular unlocking.

As attention In Spot On Chain, the majority of these tokens will be sent to the cryptocurrency exchange Binance, which will Falling like a waterfall Chainlink price. These speculations have escalated further given that Chainlink is not lagging behind. Market decline spreads And now it’s down 8% in the past seven days.

LINK continues to fall amid token unlock

Like many crypto tokens, Chainlink has a token unlocking schedule that ensures an annual LINK release rate of approximately 7% of the total circulation. The recent unlock saw the number of LINK tokens in circulation exceed 600 million for the first time. Immediately after the unlock, 18.25 million LINK tokens worth $265 million were instantly sent to Binance.

An additional 2.25 million LINK tokens, worth $31.3 million, were sent to a multi-sig wallet named 0xD50f. With such a large influx of LINK tokens on Binance, LINK holders may want to liquidate their positions out of fear of a possible price crash. This increased demand could be a sign that the price of LINK will soon fall further.

Interestingly, this unlocking appears to have contributed to a further decline in the price of LINK, which was struggling to find support amid the broader price decline, dropping a further 1.4%.

Will Chainlink fall further to $10?

As Spot On Chain noted, this unlocking brings the total number of LINK tokens unlocked to 127 million since August 2022, with 107.7 million sent to Binance. However, previous unlocks have kept the price fairly stable, and LINK investors are likely already familiar with these regular unlocks and migrations to Binance.

Looking at the chart below, we can see that three of the last four unlocks were preceded by an eventual price surge for LINK, however, given current market conditions, a different scenario may unfold.

Source: X

At the time of writing, LINK is trading at $13.64 and is approaching the support of $13.5. If it fails to bounce off the support, it could plummet to $10. Technically, the $10 level is currently acting as a key psychological support that will determine whether LINK will continue trading in double digits. A breakout of this could trigger stop losses and intensify selling pressure.

There are 24 LINKs yet to be unlocked, leaving 391.5 million LINKs worth a total of $5.4 billion. Only time will tell how this will affect the price of LINK.

Chainlink price chart on Tradingview.com
LINK Price Recovers Above $13 | Source: LINKUSDT on Tradingview.com

Featured image created by Dall.E, chart taken from Tradingview.com

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