Chainlink traded inside a descending channel after rejection near $23 roughly two months ago.
On the daily chart, Chainlink [LINK] rebounded from a $11.7 dip and traded near $12.5 at press time.
Even so, LINK remained down 8.78% weekly and 9.25% monthly, reflecting persistent downside pressure. Against this backdrop, Chainlink’s non-circulating supply wallet moved a large batch of tokens.
Chainlink supply wallet unlocks tokens
According to Onchain Lens, Chainlink’s non-circulating supply wallet unlocked 11.25 million LINK.
Of that amount, 9.23 million LINK, worth about $116 million, were deposited into Binance in two batches.
Source: Etherscan
One transfer sent roughly 5.22 million LINK, while another moved close to 4.0 million LINK. The remaining 2.02 million LINK, valued near $25 million, moved to a Chainlink-linked multisig wallet.
These transfers marked the first movement from the wallet in over two months. Historically, deposits of this size to exchanges often preceded selling activity.
In fact, exchange activity also recorded these token movements. According to CryptoQuant data at press time, Exchange Inflow jumped to 10.2 million LINK, while Outflow was only 1.1 million.
Source: CryptoQuant
As a result, Exchange Netflows surged to roughly 9.1 million LINK, a two-month high. However, Netflows later cooled and stood near -117,000 LINK at press time.
That pullback suggested selling pressure eased after the initial deposit wave.
Buyers step in near $12
Interestingly, despite massive flows into exchanges from unlocked tokens, LINK successfully held the $12 support level, halting a potential market breakdown.
The altcoin bounced as buyers stepped in and bought the dip. According to Coinalyze, Chainlink recorded 3.5 million in Buy Volume compared to 3.2 million in Sell volume.
That imbalance produced a positive Buy/Sell Delta of about 300,000 LINK, the first in two weeks. The shift pointed to improving short-term demand.
Source: Coinalyze
As a result, the altcoin’s Stochastic Relative Strength (RSI) made a bullish crossover and jumped to 23, although still stuck within oversold territory.
Source: TradingView
That crossover hinted at strengthening buyer momentum rather than a confirmed trend reversal. If buyers continued to defend $12, LINK could attempt a rebound toward $13.02.
A stronger recovery would place resistance near $13.7.
Failure to hold support, however, could expose downside toward $11, with $10.9 acting as a critical level.
Final Thoughts
- Large token unlocks often test market conviction, and LINK faced that pressure head-on near $12.
- Buyers’ response suggested short-term confidence, but sustained strength may depend on how quickly excess supply clears.
Go to Source to See Full Article
Author: Gladys Makena
