Chainlink (LINK) recently faced a significant market test following a substantial unlock of tokens from its non-circulating supply, leading to considerable transfers onto exchanges. This event, often a precursor to heightened selling pressure, prompted a close examination of the cryptocurrency's immediate price action and underlying market sentiment.
Major Token Movements Spark Concern
Approximately 11.25 million LINK tokens were unlocked from a Chainlink non-circulating supply wallet, marking the first such movement in over two months. A significant portion, 9.23 million LINK (valued at roughly $116 million), was subsequently deposited into Binance in two batches, with the remaining 2.02 million LINK directed to a Chainlink-linked multisig wallet. Historically, large deposits of this nature to exchanges have often signaled impending selling activity, a pattern that initially manifested as Exchange Netflows surged to a two-month high, reflecting a potential increase in supply pressure.
Buyers Defend Key Support Level
Despite the massive inflow of unlocked tokens into exchanges, Chainlink's price demonstrated remarkable resilience, successfully holding the crucial $12 support level and preventing a deeper market breakdown. This robust defense was largely attributed to a strong intervention from buyers, evidenced by a positive Buy/Sell Delta—the first in two weeks—where Buy Volume outpaced Sell Volume by about 300,000 LINK. This shift underscores improving short-term demand and a strengthening of buyer momentum, despite the asset still trading within oversold territory.
Navigating Future Price Action
The immediate aftermath saw a cooling of Exchange Netflows, suggesting buyers absorbed the initial wave of new supply. With the $12 support firmly defended and a bullish crossover appearing in the Stochastic Relative Strength Index (RSI), Chainlink is now poised for a potential rebound toward $13.02, with further resistance levels near $13.7. The sustained ability of buyers to maintain this pivotal support will be crucial in determining whether LINK can sustain its recovery or if a failure to hold could expose it to lower price targets around $11 and $10.9.
