Chainlink Reached 22-Month High But May Fall: Here’s Why!

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Leading cryptocurrency Chainlink (LINK) recently reached a 22-month high, hitting $18 for the first time since April 3, 2023. However, more than 19 million LINK tokens worth approximately $341 million were observed to be mined from three non-circulating supply contracts, attracting everyone’s attention.

Recently, SpotOnChain, an on-chain analysis firm, reported the launch of these 19 million LINK tokens on X shared. According to the post, 15.95 million of these 19 million LINK tokens, worth approximately $287 million, were deposited on Binance, the world’s largest cryptocurrency exchange. The remaining 3.05 million LINK tokens, worth approximately $54.3 million, were moved to Multisig.

However, a total of 106 million Chainlinks have been unlocked since August 2022, with 88.95 million LINK sent to Binance at an average price of $9.06, bringing the total to approximately $805 million. Currently, there are 412.5 million LINK tokens in 24 contracts worth approximately $7.35 billion.

These key LINK tokens, valued at $7.35 billion across 24 contracts, highlight that they may still not be in circulation. Additionally, these contracts may be mechanisms by which certain portions of LINK tokens are restricted from normal circulation and are often used for various purposes such as team vesting, partnerships, or other strategic allocations.

Moreover, these 24 contracts may have their own rules, conditions, and even release timelines. However, it is common for blockchain projects to have multiple contracts to hold, manage and control non-circulated tokens, just like LINK.

LINK Price and Upcoming Movement

Koinfinans.com As we reported, despite the unlocking of these important tokens, LINK managed to gain upward momentum of over 25% in the last 7 days, reaching a 22-month high. However, according to SpotOnChain, LINK may experience a slight drop in price in the coming days due to the unlocking of more than 19 million tokens.

With the unlocking of this important token, LINK is currently trading around $17.7 and has experienced slight downward momentum over the past 24 hours. Looking at LINK over a longer period of time, it has gained upward momentum of over 25% in the last 7 days and over 23% in the last 30 days.

According to expert technical analysis, given the recent token unlock and concerns from SpotOnChain, if LINK experiences some bearish movement, we could see LINK trading between $14 and $17 in the coming days. LINK has been consolidating in this range for the last 3 months and is currently at the top.


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