The cryptocurrency market has seen severe downward pressure over the past week, and Chainlink (LINK) price was no exception. The altcoin continued to struggle with its turbulent form, losing nearly 10% of its value in the past seven days.
Interestingly, the bears appear to still be in control at the moment, as the latest on-chain revelation suggests that there could be more downside for LINK's price over the next few days.
Are Chainlink investors offloading their assets?
Famous cryptocurrency analyst Ali Martinez open In a post on Platform This on-chain observation is based on Santiment's “supply on exchanges” metric, which tracks how much of a given cryptocurrency is held on centralized exchanges.
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When the value of this metric increases, it means that investors are making more deposits than withdrawals of cryptocurrency (Chainlink, in this case) on centralized exchanges. On the other hand, a decline in the value of the metric indicates that coin holders are moving their coins off the trading platforms.
According to data from Santiment, more than 18.77 million LINK (worth approximately $256.2 million) were transferred to cryptocurrency exchanges in the past day. This large transfer represents one of the largest single-day movements for the Chainlink token in recent months.
Interestingly, A Report from SpotOnChain It revealed that 21 million Chainlink OTC tokens were unlocked on Friday, June 21. Specifically, the transferred 2.25 LINK token contract was sent to the multi-signature wallet 0xD50f.
Notably, 18.25 million LINK tokens were sent to Binance, the world's largest cryptocurrency exchange. This token opening represents a supply inflation situation, which could affect the value of the token especially if a sell-off occurs.
Moreover, such money movements could precipitate increased market volatility and potentially lead to price fluctuations. Due to the volume and destination of these transfers, there is a greater potential for increased selling pressure, which could lead to a decline in LINK's price.
Is a return to $12 on the cards?
As of this writing, Chainlink's price is barely above $13.6, having fallen more than 3% in the past day. Meanwhile, the altcoin has fallen 9% from around $15 to $13.5 over the past week, according to data from CoinGecko.
If the recent selling pressure continues, there could be further decline on the horizon for LINK's price. This could see the cryptocurrency return to around the $12 price zone for the first time in over a month.
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However, the Chainlink token ranks among the 20 largest cryptocurrencies in the sector, with a market capitalization of over $8.27 billion.
Featured image from Binance Academy, chart from TradingView