19 million Chainlink tokens transferred to exchanges – further downside for LINK price? — TradingView News

The cryptocurrency market has been facing strong downward pressure over the past week, and Chainlink (LINK) price has been no exception. The altcoin continues to struggle with its poor form, losing almost 10% of its value over the past seven days.

Interestingly, the bears still seem to be in control at the moment, and the latest on-chain revelations suggest that the LINK price could continue to fall in the next few days.

Are Chainlink investors selling their assets?

Well-known crypto analyst Ali Martinez revealed in a post on the X-Platform that huge amounts of the Chainlink token have found their way to centralized exchanges over the past 24 hours. This on-chain observation is based on Santiment’s “Supply on Exchanges” metric, which tracks the amount of a particular cryptocurrency held on centralized exchanges.

When the value of this metric increases, it means that investors are making more deposits than withdrawals of a cryptocurrency (in this case, Chainlink) on centralized exchanges. A decrease in the value of the metric, on the other hand, indicates that holders are withdrawing their coins from trading platforms.

According to data from Santiment, more than 18.77 million LINK (worth around $256.2 million) were transferred to cryptocurrency exchanges in the past day. This sizable transfer represents one of the largest daily moves for the Chainlink token in recent months.

Interestingly, a report from SpotOnChain revealed that 21 million tokens were unlocked from Chainlink’s uncirculated supply contracts on Friday, June 21. Specifically, the contract sent 2.25 LINK tokens to the multi-sig wallet 0xD50f.

Most notably, 18.25 million LINK tokens were sent to Binance, the world’s largest cryptocurrency exchange. This significant token release represents a case of supply inflation, which can affect the token’s value, especially if a sell-off occurs.

Furthermore, these movements of money can trigger increased market volatility and potentially cause price fluctuations. Given the size and destination of these transfers, there is a greater likelihood of increased selling pressure that can drive the price of LINK lower.

Is a return to $12 possible?

At the time of writing, Chainlink’s price is barely above $13.6 after falling more than 3% over the past day. Meanwhile, the altcoin has fallen 9% over the past week, from around $15 to $13.5, according to data from CoinGecko.

If the recent selling pressure continues, LINK’s price could continue to fall. This could see the cryptocurrency return to the price zone of around $12 for the first time in over a month.

Nevertheless, with a market capitalization of over $8.27 billion, the Chainlink token is one of the 20 largest cryptocurrencies in the industry.