Chainlink recently released 21 million LINK tokens valued at $295 million, with most of them going to Binance, sparking worries of a potential price drop for Chainlink amidst broader market declines.
LINK Tokens Flood Market Amid Unlock Event
Chainlink follows a token unlock schedule that gradually releases tokens into circulation, with the recent event pushing the circulating supply over 600 million for the first time. A significant portion, 18.25 million LINK tokens worth $265 million, was swiftly transferred to Binance, potentially prompting holders to consider selling and leading to a possible price decrease.
Following the token release, there was a further 1.4% decline in LINK’s price as it struggled amid market turbulence.
Potential for LINK to Drop to $10?
Despite previous unlocks not significantly impacting LINK’s price, the current market conditions may result in a different outcome. While historical data shows price spikes post-unlock, the current scenario suggests a drop to $10 is plausible if support at $13.5 fails to hold, triggering further sell-offs and stop losses.
There are still 391.5 million LINK tokens worth $5.4 billion in 24 contracts yet to be unlocked, and their entry into the market could sway LINK’s price trajectory in the near future.
