Chainlink Price Prediction: Will LINK Correction Slip Under $10 By June End?

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

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.