The cryptocurrency market has witnessed intense bear pressure over the past week, and the price of Chainlink (LINK) was no exception. The altcoin continues to struggle from sizzling form, losing almost 10% of its value over the last seven days.
Interestingly, the bears still seem to be in control at the moment, and the latest news on the chain suggests that the LINK price may see further decline in the next few days.
Are Chainlink Investors Offloading Their Assets?
Popular cryptocurrency analyst Ali Martinez revealed in a post on Platform X that huge amounts of Chainlink tokens hit centralized exchanges last day. This on-chain watch is based on Santiment’s “Exchange Supply” indicator, which tracks the amount of a specific cryptocurrency held on centralized exchanges.
When the value of this indicator increases, it means that investors are making more deposits than withdrawals of cryptocurrency (in this case Chainlink) to centralized exchanges. On the other hand, a decline in the value of the metric indicates that holders are withdrawing their coins from trading platforms.
According to Santiment data, over 18.77 million LINKs (worth approximately $256.2 million) were transferred to cryptocurrency exchanges over the last day. This significant transfer represents one of the largest single-day moves for the Chainlink token in recent months.
Interestingly, a report from SpotOnChain revealed that 21 million tokens were unlocked from uncirculated Chainlink supply contracts on Friday, June 21. Specifically, the deal transferred 2.25 LINK tokens to multi-sig wallet 0xD50f
Moreover, 18.25 million LINK tokens were sent to Binance, the world’s largest cryptocurrency exchange. This significant unlocking of the token represents a case of supply inflation, which may impact the value of the token, especially if a sell-off occurs.
Moreover, these fund movements could accelerate an raise in market volatility and possibly lead to price fluctuations. Given the size and purpose of these transfers, there is a greater likelihood of increased selling pressure which could depress LINK’s price.
Is a return to $12 on the cards?
As of this writing, Chainlink’s price is barely holding above $13.6, after falling over 3% in the last day. Meanwhile, the altcoin has dropped 9% from around $15 to $13.50 over the past week, according to CoinGecko data.
If recent selling pressure continues, further declines in LINK’s price could be on the horizon. This could mean the cryptocurrency returns to the price zone around $12 for the first time in over a month.
Nevertheless, the Chainlink token ranks among the top 20 cryptocurrencies in the sector, with a market capitalization of over $8.27 billion.
Featured image from Binance Academy, chart from TradingView
