Chainlink price movement crashes to 2-month low after $149M token unlock floods Binance

Chainlink (LINK) plummeted 15% to a two-month low this week after $149 million worth of tokens hit the market, sparking fears of a sustained sell-off. The sharp Chainlink price movement came as 17.875 million LINK tokens were unlocked from reserves and transferred to Binance, the eleventh such unlock since 2022, while whale activity dumped an additional $25 million into exchanges

On June 21, blockchain analytics firm LookOnChain confirmed that 17.875 million LINK tokens were released from Chainlink’s non-circulating reserve and moved to Binance, the world’s largest crypto exchange by trading volume. This marked the eleventh routine unlock since the quarterly event began in 2022.

Unlocking routing, unnerving impacts

Although the Chainlink price movement aligns with expected token release schedules, the reaction from traders has been swift and cautious.

“Every unlock injects uncertainty,” said Lucas Outumuro, Head of Research at IntoTheBlock. “Especially when these tokens flow straight to centralized exchanges like Binance. That often implies potential sell pressure.”

This time, the pressure is tangible. Data from IntoTheBlock reveals that over $225 million in LINK flowed into exchanges this week alone.

One significant transaction, reported by Whale Alert, involved 1.9 million LINK—worth about $25 million—moved from an unknown wallet directly to Binance.

The aftermath of the unlock has not been kind to bulls. According to BeInCrypto, LINK plunged more than 5% in just 24 hours following the token shift and is now trading near $11.80, its lowest price since April.

Over the past month, LINK has seen a staggering 30% decline, compounding a 13% loss year-over-year.

This dramatic Chainlink price movement reinforces concerns among traders that increased token supply is not being matched by buying pressure.

“Rising exchange inflows are historically a red flag,” noted crypto analyst Ali Martinez. “When supply increases without matching demand, price erosion is the natural outcome.”

Oracle powerhouse still has long-term bulls

Despite the short-term pessimism surrounding the current Chainlink price movement, long-term holders remain confident in the protocol’s fundamental value.

Chainlink’s Oracle infrastructure powers crucial decentralized finance (DeFi) functions, including proof-of-reserve audits for stablecoins, secure off-chain data feeds, and cross-chain smart contract execution.

“Chainlink is indispensable to DeFi,” said Sergey Nazarov, co-founder of Chainlink. “We’re building not just for today’s market, but for the future of global finance.”

Supporters point to its growing relevance in real-world asset tokenization and its partnerships with major enterprises as indicators that the token’s current dip may be temporary.

Can LINK rebound after the unlock?

With the token now back in the sub-$12 range, the next few days will be pivotal for the Chainlink price movement narrative.

Traders are watching closely to see whether the influx of tokens triggers a broader selloff or if buyers step in to stabilize the market.

On-chain data suggests LINK is approaching oversold territory, but analysts warn against premature optimism.

“We’re not yet seeing volume-based confirmation of a reversal,” said Michael van de Poppe, founder of MN Trading. “But if LINK holds this level, a relief bounce could be in play.”

For now, the Chainlink price movement serves as a case study in how protocol-level mechanics—like scheduled unlocks—can ripple across an already fragile market, affecting sentiment, liquidity, and price action.

Conclusion: Volatility looms over Chainlink price movement

The Chainlink price movement has been anything but stable this June. With $149 million in tokens entering circulation and growing sell pressure visible on exchanges, the token faces one of its most critical short-term tests of 2024.

Still, with Chainlink maintaining its position as a DeFi backbone, many industry veterans believe LINK’s fundamentals will eventually triumph over short-term volatility.

Whether that recovery comes swiftly or follows further decline depends on how markets react in the wake of this high-stakes token unlock.

The Chainlink price movement has ignited fresh market anxiety, as traders weigh the impact of $149 million in unlocked tokens.

With volatility intensifying, the coming days could redefine the trajectory of the Chainlink price movement across the crypto landscape.