In a surprising turn of events, two non-circulating supply addresses of Chainlink (LINK) initiated a transfer worth $128 million of the token into Binance, as per Etherscan data. This substantial movement comprised 11.2 million unlocked tokens, signaling a potential intent to sell these assets.
The unexpected token transfer of $128 million of Chainlink to Binance contradicted the project’s previous assurances regarding the non-circulating supply. Originally, the project pledged that these tokens wouldn’t be liquidated but instead allocated for subsidies and rewarding the network nodes, a stance that the Chainlink community found surprising and contradictory to the recent action.
Responses among LINK holders displayed a range of sentiments following this revelation. While a faction remained unperturbed by the development, discontent surfaced notably among specific members to shed light on the decision. ChainlinkGod, acting as a community ambassador, endeavored to elucidate the reasoning behind this maneuver.
In a recent X post, ChainlinkGod referred to a communication from June within the web3 project. This communication delineated a detailed token release schedule encompassing the previously mentioned Oracle rewards.
Chainlink’s Transfer And Market Challenges
The community believes this transfer could have been an intentional move by the Chainlink team to offload tokens, leading to doubts about a “dump.” Despite LINK’s impressive performance compared to other altcoins last year, the market conditions have shifted unfavorably, indicating a tough period for the token.
According to CoinMarketCap data, LINK’s value skyrocketed by an impressive 123% over the last year. However, the past week painted a contrasting picture with a substantial downturn. LINK is priced at $14.49, marking a significant 14.14% decline within seven days. A detailed technical analysis of the LINK 4-hour chart unveils a market dynamics transition from a previously bullish stance to a more bearish outlook.
Source: TradingView
Furthermore, the token experienced a breakdown below the $14.55 support level due to selling pressure. Reaching the previous peak of $17.22, observed on December 10, seems increasingly challenging for LINK amidst persistent selling pressure. The Exponential Moving Average (EMA) indicators support the bearish trend, notably the 9 EMA crossing below the 20 EMA. This trend projection suggests a bearish sentiment prevailing within the LINK market.
However, the proximity of the 9 and 20 EMAs could complicate predicting the next market move. As such, market analysts advise caution, refraining from initiating long or short positions due to the uncertainty, as any potential reversal remains ambiguous.