Chainlink Price Drops 5% Following Major Binance Transfer

On April 7, the Chainlink price once again lost its momentum witnessed on the previous day and fell below $9.0 with a drop of approximately 5% in the last 24 hours.

In the last 7 days, this is the second time LINK token failed to hold a position above $9.0 and faced a quick retest. At the time of writing this, Chainlink price is trading at around $8.62 with a market capitalization of around $6.27 billion, according to CoinMarketCap.

Large Token Transfer to Binance Triggers Selling Pressure

In the major development, the price drop is directly related to large token transfers. More than 14 million LINK tokens valued at $125 million moved to the Binance exchange from a single anonymous address. This transfer happened just days after a quarterly unlock released 19 million tokens from the non-circulating supply. On-chain data confirms that these incoming funds far exceeded a recent buyback of nearly 3 million Chainlink carried out by the project team. 

(Source: CryptoQuant)

In the crypto market, large deposits often show potential selling pressure. Whales with more than one million LINK each have increased their numbers from 100 wallets to 125 over the past year. This shows steady long-term accumulation. 

However, the immediate supply pressure from this transfer overshadowed those positive signals and directly caused the 5% drop. 

Chainlink (LINK) Price Fails to Hold Position Above $9.0

According to TradingView, some major technical indicators are suggesting a neutral to bearish trend for the Chainlink price chart. The Relative Strength Index on the daily chart is revolving around 36, which means that momentum is neither overbought nor oversold. The Moving Average Convergence Divergence shows a buy signal.

Although most moving averages, including the 50-day and 200-day simple moving averages, indicate sell pressure because the price trades well below them.

There is a major support level near $7.96 and a resistance level around $9.02 based on historical data. The Chainlink price is expected to continue to follow a descending trendline on the daily timeframe with lower highs forming over recent months. This setup suggests that the LINK price may stay in a tight range around current support levels until a clear breakout happens. 

At the same time, Bollinger Bands are highlighting upcoming volatility. This could lead to a sharp move in either direction. 

The crypto market is currently going through a consolidation phase amid the uncertainty in the global financial markets due to the ongoing war in the Middle East. The ongoing war between the U.S. and Iran has triggered a global energy crisis. 

Amid the catastrophic situation, Stagflation fears have emerged in global markets where slow economic growth combines with ongoing inflation concerns. Bitcoin has been stuck in a tight range between $66,000 to $69,000, which limits upward movement. This caps gains for related altcoins like LINK. 

Investors are keeping a risk-off stance amid uncertainty over future interest rate decisions and recent economic indicators, including unemployment data.

Chainlink price is maintaining its position above the lower border of the symmetrical triangle on the 2W chart. The LINK price is holding above this threshold with bullish undertones building under the surface. This immediate selling pressure from whales moving over 14 million LINK tokens to the exchange. 

If the LINK price starts to soar again, there will be potential upside targets after a bounce confirmation at $11.50, $22, $34, and $48. However, this breakout is completely dependent on the price successfully holding current support around $7.96.

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