The cryptocurrency market witnessed severe bearish pressure over the past week, and the worth of Chainlink (LINK) wasn’t an exception. The altcoin has continued to struggle with its torrid form, losing nearly 10% of its value within the last seven days.
Interestingly, the bears appear to still be on top of things for the time being, with the newest on-chain revelation suggesting that there could be further downside for the LINK price over the subsequent few days.
Are Chainlink Investors Offloading Their Assets?
Popular crypto analyst Ali Martinez revealed in a post on the X platform that vast amounts of the Chainlink token have made their strategy to centralized exchanges previously day. This on-chain remark relies on Santiment’s “Supply on Exchanges” metric, which tracks the quantity of a specific cryptocurrency being held on centralized exchanges.
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When this metric’s value increases, it implies that investors are making more deposits than withdrawals of a cryptocurrency (Chainlink, on this case) into centralized exchanges. A decrease within the metric’s value, then again, indicates that holders are moving their coins out of the trading platforms.
Source: Ali_charts/X
In keeping with data from Santiment, greater than 18.77 million LINK (price roughly $256.2 million) were transferred to cryptocurrency exchanges previously day. This substantial transfer represents one among the biggest single-day movements for the Chainlink token in recent months.
Interestingly, a report from SpotOnChain revealed that 21 million tokens were unlocked from Chainlink’s non-circulating supply contracts on Friday, June 21. Specifically, the contract transferred 2.25 LINK tokens were sent to the multi-sig wallet 0xD50f
More notably, 18.25 million LINK tokens were sent to Binance, the world’s largest cryptocurrency exchange. This significant token unlock presents a case of supply inflation, which may impact the worth of the token especially if a sell-off occurs.
Furthermore, these fund movements can precipitate a rise in market volatility and possibly result in price fluctuations. Given the magnitude and destination of those transfers, there’s a greater likelihood of increased selling pressure, which may drive down the worth of LINK.
Is A Return To $12 On The Cards?
As of this writing, the worth of Chainlink is barely holding above $13.6, having declined by greater than 3% previously day. Meanwhile, the altcoin slumped 9% from about $15 to $13.5 over the past week, in line with data from CoinGecko.
If the recent selling pressure continues, then further decline could be on the horizon for LINK’s price. This might see the cryptocurrency make a return to across the $12 price zone for the primary time in greater than a month.
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Nevertheless, the Chainlink token ranks amongst the highest 20 largest cryptocurrencies within the sector, with a market capitalization of over $8.27 billion.
Chainlink price at $13.6 on the every day timeframe | Source: LINKUSDT chart on TradingView
Featured image from Binance Academy, chart from TradingView