Chainlink Price Prediction: The weekends are quite stable for the cryptocurrency market as Bitcoin price is struggling hard to sustain above $64000. However, the bearish momentum is still active of several major altcoins including Chainlink projecting a continued downward trajectory. The LINK price falling for three consecutive days recorded an 8.3% loss and was dumped to $13.57. Will this correction extend if BTC plunges to the $60000 mark?
21M $LINK Unlocked from Chainlink Noncirculating Supply Contracts
Chainlink Price Prediction| Tradingview
Amid the current market correction, the Chainlink price shows a V-top reversal from the $19.2 mark. This first lower high formation after a notable uptrend indicates an initial sign of traders’ sentiment changing in the LINK token.
The bearish turnaround has tumbled the asset 29% down to trade at $13.62, while the market cap fell to $8.281 Billion. If the selling pressure persists, the LINK price could fall another 9-10% before hitting multi-month support of $12.26.
The support coinciding close with the 200-weekly EMA and an ascending trendline creates a strong confluence point for buyers to counterattack.
Furthermore, Chainlink has recently unlocked 21 million LINK tokens, valued at $295 million, from its noncirculating supply contracts, according to Spot On Chain. This includes:
18.25 million $LINK ($264 million) to Binance.
2.25 million $LINK ($31.3 million) to a multisig wallet.
Since August 2022, Chainlink has unlocked 127 million $LINK and sent 107.7 million $LINK to Binance, maintaining an average price of $9.89. Currently, 391.5 million $LINK tokens ($5.4 billion) remain in 24 contracts.
21M $LINK ($295M) was unlocked from @chainlink Noncirculating supply contracts ~3hrs ago, including:
• 18.25M $LINK ($264M) to #Binance• 2.25M $LINK ($31.3M) to Multisig 0xD50f
Notably:– Chainlink has unlocked 127M $LINK and sent 107.7M $LINK to Binance at ~$9.89 since Aug… https://t.co/bVUDTMDFgZ pic.twitter.com/jxaO5Glxjb
— Spot On Chain (@spotonchain) June 21, 2024
Despite these movements, the $LINK price has remained stable, indicating a well-maintained market. This suggests that the market has been able to absorb the increased supply without significant volatility, indicating a strong demand.
This increases the price potential for a bullish reversal offering a dip opportunity for sidelines traders. However, for buyers to regain better control over the asset, a breakout from the overhead trendline is needed.
The potential breakout will accelerate the buying momentum and bolster buyers to challenge the $22.8 high followed by $28.7.
However, a breakdown below the trendline will signal the continuation of the downward trend and plunge the price to $9.46.
Technical Indicator:
Experimental Moving Average: A bearish crossover between the 20-and-200-day EMA should accelerate the selling pressure for a prolonged downfall.
ADX: An uptick in ADX 37% indicates the sellers leading an exhausted fall will need short bounced to recuperate the selling momentum.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
