Chainlink Holds $12.50 Support Despite $115M LINK Binance Deposit

Chainlink Price Holds Steady at $12.50 Amid Major Token Unlock and Binance Deposits

Chainlink (LINK) has demonstrated remarkable resilience in recent trading sessions, maintaining key support levels despite significant token movements from its non-circulating supply wallet.

After facing rejection near the $23 mark about two months ago, Chainlink has been trading within a descending channel pattern on the daily timeframe. The cryptocurrency recently rebounded from a low of around $11.70 and is currently hovering near $12.50, reflecting a modest recovery amid broader market pressures.

Despite these gains, LINK has experienced notable declines, dropping approximately 8.78% over the past week and 9.25% on a monthly basis. This ongoing downside momentum highlights the persistent bearish sentiment in the altcoin sector, yet recent on-chain developments have introduced both risks and potential opportunities for traders.

Significant Token Unlock Triggers Exchange Inflows

A major event shaking the Chainlink ecosystem involved the unlocking of 11.25 million LINK tokens from a non-circulating supply wallet—the first such activity in over two months. Of this batch, a substantial 9.23 million LINK, valued at roughly $115 million based on current prices, were transferred to Binance in two separate transactions.

One batch included about 5.22 million LINK, while the second moved nearly 4 million LINK. The remaining 2.02 million LINK, worth around $25 million, were sent to a multisig wallet associated with the Chainlink project.

Large-scale deposits to centralized exchanges like Binance have historically often signaled impending selling pressure, as they increase liquidity available for trading. On-chain metrics confirmed this trend initially, with exchange inflows spiking to 10.2 million LINK while outflows lagged at just 1.1 million. This pushed netflows to a two-month peak of approximately 9.1 million LINK.

However, the situation stabilized quickly, with netflows later retreating to around -117,000 LINK. This reversal indicates that the initial wave of potential selling was absorbed by the market, easing immediate downside risks.

Buyers Defend Key Support, Signaling Short-Term Strength

Despite the influx of unlocked tokens potentially adding supply pressure, Chainlink's price successfully defended the critical $12 support zone, preventing a deeper breakdown. Buyers aggressively stepped in during the dip, driving a bounce that halted further declines.

Trading volume data underscores this shift in momentum. Buy volume reached 3.5 million LINK, outpacing sell volume of 3.2 million, resulting in a positive buy/sell delta of about 300,000 LINK—the first such imbalance in two weeks. This suggests growing short-term demand and a potential easing of bearish control.

Technical indicators are beginning to reflect this buyer intervention. The Stochastic Relative Strength Index (RSI) on the daily chart recently formed a bullish crossover, pushing the reading to 23. While still in oversold territory, this move points to building momentum among buyers, though it does not yet confirm a full trend reversal.

Potential Price Targets and Risks Ahead

If buyers continue to protect the $12 level, Chainlink could target a recovery toward $13.02 in the near term. A more robust rebound might challenge resistance around $13.70, potentially signaling the start of a broader upward move within the descending channel.

On the flip side, failure to hold $12 could open the door to further downside, with $11 as the next major support and $10.90 serving as a crucial lower boundary. A break below these levels might accelerate selling and test even lower zones.

Chainlink's role as a leading decentralized oracle network continues to underpin its long-term value, powering secure data feeds for DeFi, RWAs, and cross-chain applications. Recent advancements, including expanded partnerships and protocol upgrades, add to the ecosystem's fundamentals. However, short-term price action remains heavily influenced by supply dynamics and overall crypto market sentiment.

Traders should monitor exchange flows and volume closely, as sustained buyer dominance could pave the way for a stronger recovery. In a volatile environment, Chainlink's ability to weather this unlock without significant breakdown highlights underlying strength, but caution is warranted until clearer bullish confirmation emerges.

Todor Tsonev publication: "Chainlink Holds $12.50 Support Despite $115M LINK Binance Deposit" was written for 24crypto.news

---

News from today

---

Related news

Chainlink (LINK) Recovery Signal: Binance Whales Accumulate 3,150 LINK, Taker Buy Volume Jumps to 2.21

Chainlink (LINK) Price Dips Below $20: Key Support Levels and Market Insights for Investors

Chainlink Price Alert: $LINK Hits Critical Support as Exchange Supply Plummets

LINK Price Prediction: Chainlink Defends $11.80 Support Zone as RSI Signals Bullish Divergence

More news with author: Todor Tsonev