Chainlink Token Unlock Raises Concerns of Price Dip

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.

Chainlink Token Unlock Raises Concerns Of Price Dip

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.

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