The cryptocurrency market has been experiencing a bearish trend recently, and Chainlink (LINK) has not been immune to this pressure. In the past week, the altcoin has seen a significant drop in value, losing almost 10%. The latest on-chain data suggests that there may be further downside for LINK in the coming days as bears continue to dominate the market.
Crypto analyst Ali Martinez has noted a large amount of Chainlink tokens being deposited on centralized exchanges. This movement of tokens could indicate that investors are offloading their assets, potentially leading to an increase in selling pressure. In the past day alone, over 18.77 million LINK tokens, worth around $256.2 million, were transferred to exchanges, marking one of the largest single-day movements for the token in recent months.
Furthermore, a report has revealed that 21 million tokens were unlocked from Chainlink’s non-circulating supply contracts, with a significant portion being sent to Binance. This token unlock could lead to supply inflation, impacting the value of LINK, especially if a sell-off occurs. Additionally, these movements can increase market volatility and potentially lead to price fluctuations, with a higher likelihood of selling pressure causing further price declines.
Currently, the price of Chainlink is hovering just above $13.6, having dropped over 3% in the past day and 9% in the past week. If the selling pressure continues, the price of LINK may decline further, potentially returning to around the $12 price zone. Despite the recent setbacks, Chainlink remains one of the top 20 largest cryptocurrencies with a market capitalization of over $8.27 billion.
In conclusion, the cryptocurrency market, including Chainlink, has been facing significant bearish pressure leading to price declines. The movement of large amounts of LINK tokens to centralized exchanges suggests that investors may be offloading their assets, leading to increased selling pressure. The recent unlock of 21 million tokens from non-circulating supply contracts further adds to the potential supply inflation, impacting the value of LINK. As the market continues to be volatile, there is a possibility of further price fluctuations for Chainlink in the coming days.
