The cryptocurrency market has seen a lot of bearish pressure in the past week, and the price of Chainlink (LINK) was no different. The altcoin has continued to struggle with its torrid form, losing nearly 10% of its value in the past seven days.
Interestingly, the bears seem to be in control at the moment, with the latest on-chain revelations suggesting that there could be further lows in the price of LINK over the next few days.
Are Chainlink Investors Dumping Their Assets?
The famous crypto analyst Ali Martinez revealed in a post on the X platform that large amounts of Chainlink token have reached the medium exchange in the past day. This on-chain view is based on Santiment’s “Supply on Exchanges” metric, which tracks the amount of a particular cryptocurrency held on a centralized exchange.
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If the value of this metric increases, it means that investors are making more deposits than withdrawals of cryptocurrency (Chainlink, in this case) in the central exchange. A decrease in the value of the metric, on the other hand, indicates that owners are withdrawing their coins from trading platforms.
According to data from Santiment, more than 18.77 million LINK (worth about $256.2 million) was transferred to cryptocurrency exchanges in the previous day. This large transfer represents the largest one-day movement of the Chainlink token in recent months.
Interestingly, a report from SpotOnChain revealed that 21 million tokens were unlocked from Chainlink’s non-revolving supply contracts on Friday, June 21. Specifically, the contract transferred 2.25 LINK tokens sent to the multi-sig wallet 0xD50f.
Even more noteworthy, 18.25 million LINK tokens were sent to Binance, the world’s largest cryptocurrency exchange. This significant opening of the token presents a situation of inflation, which can affect the value of the token especially in the event of a sale.
In addition, these fund movements may cause increased market volatility and possibly lead to price volatility. Given the size and location of these transfers, there is a high probability of increased selling pressure, which could reduce the value of LINK.
Is It Back To $12 In Cards?
As of this writing, Chainlink’s price is roughly holding above $13.6, having fallen more than 3% in the past day. Meanwhile, the altcoin fell by 9% from about $15 to $13.5 last week, according to data from CoinGecko.
If the recent selling pressure continues, then a further decline may be imminent for LINK’s price. This could see the cryptocurrency make a return to around the $12 price area for the first time in over a month.
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Nevertheless, the Chainlink token is among the 20 largest cryptocurrencies in the sector, with a market capitalization of more than $8.27 billion.
Featured image from Binance Academy, chart from TradingView
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