Chainlink (LINK) Faces Strong Selling Pressure: Price May Drop Further
The past week has been challenging for the cryptocurrency market, and Chainlink (LINK) is no exception. The altcoin has lost close to 10% of its value in just the last seven days. The current trend hints that prices could go even lower in the coming days.
Are Chainlink Investors Selling Their Assets?
Popular crypto analyst Ali Martinez recently shared that a large amount of Chainlink tokens have been moved to centralized exchanges. This data comes from Santiment’s “Supply on Exchanges” metric, which tracks how much of a particular cryptocurrency is stored on these platforms.
- Increased value in this metric means more people are depositing the cryptocurrency into exchanges than withdrawing it.
- A decreased value shows that more people are taking their coins out of the exchanges.
In fact, over the last day, 18.77 million LINK worth approximately $256.2 million were moved to these exchanges. This is one of the biggest movements for Chainlink in recent months. A report from SpotOnChain revealed that 21 million LINK tokens were unlocked from Chainlink’s non-circulating supply contracts on Friday, June 21. Notably, 18.25 million LINK tokens were sent to Binance, the world’s largest cryptocurrency exchange.
Impact on Price
The large transfer of tokens to exchanges could lead to supply inflation, which often lowers the value of the token if a sell-off happens. Such significant movements can also increase market volatility, leading to price fluctuations. Given the substantial amounts moved to Binance, this could result in increased selling pressure, pushing LINK’s price even lower.
Is A Return to $12 Possible?
As of now, the price of Chainlink is barely holding above $13.6, having dropped more than 3% in the past day. Over the past week, the altcoin has fallen 9%, from about $15 to $13.5, according to data from CoinGecko. If this selling pressure continues, LINK’s price could drop further, potentially returning to the $12 price zone for the first time in over a month.
Despite these challenges, the Chainlink token remains one of the top 20 largest cryptocurrencies by market capitalization, valued at over $8.27 billion.
In summary, the Chainlink (LINK) market is currently experiencing a rough phase with significant transfers to exchanges suggesting continued selling pressure, which might drive the prices lower in the coming days. Keep an eye on market trends and stay informed.
