As an experienced analyst, I’m closely monitoring the cryptocurrency market and have taken note of the recent bearish pressure that has affected Chainlink (LINK) among other altcoins. Based on the latest on-chain data, it appears that investors are offloading their LINK assets, as evidenced by a significant increase in the amount of tokens being transferred to centralized exchanges.
Over the last week, the cryptocurrency market experienced intense bearish trends, and Chainlink (LINK) was no exemption. This alternative coin has persisted in its poor performance, shedding approximately 10% of its worth during this timeframe.
It’s intriguing that bears are currently holding the reins, as recent on-chain insights hint towards potential additional drops in the LINK price within the upcoming days.
Are Chainlink Investors Offloading Their Assets?
Expert: Ali Martinez, a renowned crypto analyst, shared via X platform that a significant quantity of Chainlink tokens have recently transferred to centralized exchanges according to data from Santiment’s “Supply on Exchanges” indicator. This metric monitors the cryptocurrency supply kept on centralized trading platforms.
As an analyst, I would interpret an increase in the given Chainlink exchange net flow metric as a sign that investors are actively depositing more of this cryptocurrency into centralized exchanges than they are withdrawing. Conversely, a decrease in the metric’s value indicates that there is a higher volume of coins being withdrawn from these trading platforms compared to deposits.
Based on Santiment’s data, over 18.77 million LINK, equivalent to approximately $256.2 million, were transferred to cryptocurrency exchanges in the last 24 hours. This significant transfer is among the largest single-day transactions for Chainlink tokens observed in recent months.
It’s intriguing that according to SpotOnChain’s findings, approximately 21 million Chainlink tokens were released from their locked supply contracts on June 21. More precisely, a transfer of 2.25 LINK tokens occurred and was sent to the multi-signature wallet with the address 0xD50f.
Notably, approximately 18.25 million LINK tokens were transferred to Binance, the leading global cryptocurrency exchange. This substantial release of tokens represents an instance of supply expansion, which could potentially influence the token’s value, particularly if there is a mass sell-off.
Additionally, such funds shifting direction can amplify market instability and potentially cause price swings for LINK. The size and recipient of these transactions increase the probability of heightened selling pressure, which may result in a decrease in LINK’s value.
Is A Return To $12 On The Cards?
At present, Chainlink’s price hovers around $13.6, representing a daily decrease of over 3%. Over the last week, this cryptocurrency experienced a more substantial drop, falling from approximately $15 to its current price of $13.5 according to CoinGecko data.
Should the current downward trend in LINK‘s sales persist, there is a strong possibility that its price may fall even further, potentially reaching the $12 mark for the first time since last month.
As a market analyst, I’d note that the Chainlink token holds a significant position within the crypto industry, boasting a market cap above $8.27 billion and ranking among the top 20 digital currencies.
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2024-06-24 12:03