- Project sent 18.25 million tokens to an exchange out of the 21 million tokens unlocked
LINK’s price might fall to $12.95 with resistance appearing at $13.90
As a crypto investor with some experience under my belt, I’m keeping a close eye on Chainlink (LINK) after their recent token unlock event. The project sent 18.25 million tokens to an exchange out of the 21 million that were just made available. This transfer could potentially put downward pressure on the price as it suggests that the project is ready to sell.
Chainlink [LINK], the decentralized Oracle network, has released 21 million tokens out of its non-circulating supply. At the time of release, the tokens were worth $295 million.
As a researcher studying the cryptocurrency market, I’ve noticed that Chainlink has set a limit of 1 billion tokens in circulation. Consequently, any addition of new tokens into the market could potentially impact the token price negatively by increasing supply and putting downward pressure on it.
As an analyst, I have observed historically that when a new set of tokens is released, the corresponding asset can experience significant volatility. Typically, the value decreases following the unlocking event. In reference to recent news from Spot On Chain, Chainlink transferred 18.25 million tokens to Binance after the unlocking process.
Is more supply good news?
The project has forwarded 2.25 million units, equivalent to a total value of approximately $31.3 million, to its multisignature wallet in preparation for sale on the exchange.
A multi-sig wallet is shorthand for a multi-signature wallet. This type of digital wallet employs multiple private keys for securing access to cryptocurrencies. Transactions can only be completed when authorized by more than one individual.
As an analyst, I’d interpret the token transfer from one wallet to another as a potential indication that Chainlink may not be offloading its tokens on the market imminently.
As a crypto investor, I’m observing that at the current moment, LINK is priced at $13.72. This signifies a 3.58% decrease in value over the past 24 hours. It’s possible that this decline is a residual effect of the exchange transfer we heard about earlier.
Based on the given question, Given the question at hand – will the value of LINK keep declining? Let’s delve into this query from an on-chain standpoint. The team at AMCrypto considered this possibility by examining the velocity metric.
LINK gets set to slip below $13
As a crypto investor, I would explain velocity as follows: The velocity of tokens in circulation indicates how fast they are being exchanged or used for transactions within a given network. A lower velocity reading suggests that the tokens are predominantly being held rather than actively traded or spent.
In other words, this factor may help maintain a consistent price or cause an increase. Yet, based on Glassnode’s analysis, the number of LINK transactions has been escalating since late June. Consequently, this heightened activity could potentially result in market fluctuations.
If the reading continues to rise for LINK, its price may be influenced. Consequently, a drop below $13 is also a plausible scenario.
The IOMAP provided additional proof of the possible downturn, as its findings were disclosed. This abbreviation signifies In/Out of Money At Price.
As an analyst, I would explain that by using the Chainlink metric, I can identify potential areas of support and resistance for trading. The significance of these levels increases when there is a large concentration of addresses at a particular price point. This cluster of addresses acts as a robust foundation for potential buying or selling activity.
Approximately 12,090 entities purchased a total of 5.84 million Link tokens, with an average cost of $13.40 per token, as indicated by IntoTheBlock’s data. It’s worth mentioning that this particular group now holds their tokens at a profit.
I’ve analyzed the data and found that out of the 28,280 unique Ethereum addresses that interacted with the Chainlink (LINK) contract, a group of 14,140 addresses collectively bought 11.62 million tokens at an average price of $13.90. Unfortunately, this particular group is currently facing losses. In simpler terms, the larger number of addresses in this cohort implies that it might be challenging for LINK to surpass the $14 mark based on their current holdings.
Read Chainlink [LINK] Price Prediction 2024-2025
If some investors who have suffered losses decide to sell their LINK tokens when the price reaches $13.90, the cryptocurrency’s value could decrease to around $12.95 temporarily.
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2024-06-23 00:07