Chainlink Feels Market Effects from Token Release

Chainlink recently released 21 million tokens that were not previously in circulation, valued at around $295 million at the time. Since Chainlink’s total circulating supply is capped at 1 billion tokens, releasing new tokens can often drive prices down.

Historical data supports this, showing that increased supply from token unlocks usually lowers prices. After this latest release, Spot On Chain reported that 18.25 million of these tokens were sent to Binance.

Chainlink Token Movements and Market Impact

The transfer of cryptocurrencies to exchanges is generally seen as a preparation for a sale. Recently, 2.25 million LINK worth $31.30 million were sent to a multi-sig wallet. This move suggests that these Chainlink tokens may not be sold soon.

At the time of writing, LINK was trading at $13.61, reflecting a 1.37% drop in the last 24 hours. This drop could be interpreted as a result of the aforementioned transfer. The current question in the market is whether LINK’s price will fall further.

Chainlink Network Speed and Market Predictions

Network speed indicates how quickly transactions are processed. A low metric shows tokens are being held rather than circulated. Generally, removing cryptocurrencies from circulation can increase prices due to reduced supply. However, data from Glassnode shows that LINK’s speed has been rising since June 20.

If this trend continues, LINK’s price may also rise. Conversely, a drop below $13 could occur. The IOMAP indicator, which shows price inflows and outflows, also reflects potential declines. Chainlink investors may reach resistance and support levels based on this indicator.

Data from IntoTheBlock shows that 12,090 addresses purchased 5.84 million LINK at an average price of $13.40. Understanding that this group is in profit is crucial. However, another group of 14,140 addresses bought 11.62 million tokens at $13.90, indicating losses.

In summary, LINK may not rise to $14 due to the high concentration of addresses. This is because some investors currently at a loss may cause a breakdown even if LINK reaches $13.90. Therefore, the price could drop to $12.95.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

Join Cryptos Headlines Community

Follow Cryptos Headlines on Google News