Chainlink (LINK) has been caught in the recent downturn of the cryptocurrency market, experiencing significant bearish pressure over the past week. It has lost nearly 11% of its value in the last seven days. This decline suggests that the bears are firmly in control, with on-chain data indicating further potential downside for LINK in the coming days.
A popular crypto analyst, Ali Martinez, recently highlighted a significant transfer of Chainlink tokens to centralized exchanges. Based on Santiment’s Supply on Exchanges metric, this observation shows that over 18.77 million LINK, worth approximately $256.2 million, were moved to exchanges in a single day. This large transfer is one of the most substantial in recent months and signals that investors might be preparing to offload their assets.
When the Supply on Exchanges metric increases, it typically means that more deposits than withdrawals are occurring. Conversely, a decrease suggests holders are moving their coins off exchanges. The recent surge in deposits implies that a sell-off might be imminent, which could further depress LINK’s price. The movement of 18.25 million LINK tokens to Binance, the world’s largest cryptocurrency exchange, is particularly noteworthy and hints at possible supply inflation.
A report from SpotOnChain adds another layer to the story. On June 21, 21 million tokens were unlocked from Chainlink’s non-circulating supply contracts. Of these, 18.25 million tokens were transferred to Binance, while 2.25 million were sent to a multi-sig wallet. Such large-scale movements can increase market volatility and potentially lead to significant price fluctuations.
Analyst Javon Bullish Despite Chainlink’s Challenges
Despite these bearish indicators, some analysts remain optimistic about Chainlink’s prospects. Crypto analyst Javon has recently expressed an optimistic outlook for LINK. According to Javon, the altcoin is showing strong bullish signals based on its Relative Strength Index (RSI) metrics. His analysis suggests that Chainlink could be on the verge of a breakout, targeting a price of $47.154. This represents a potential increase of more than 234% from current levels.
Javon’s analysis, supported by historical price movements, indicates that Chainlink might overcome the recent pullback and resume its upward trajectory. The RSI confirmation suggests sustained bullish momentum, and if this trend continues, LINK could see significant gains. The long-term view presented in Javon’s chart supports this optimistic outlook despite short-term fluctuations and corrections.
As of now, Chainlink is struggling to maintain a price above $13.6, having declined over 3% in the past day and 9% over the past week, according to CoinGecko. If the selling pressure persists, LINK could dip to the $12 range, a level not seen in over a month. This potential decline underscores the volatility and uncertainty currently surrounding Chainlink in the cryptocurrency market.
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