Chainlink (LINK) Faces Downward Spiral as 21M Tokens Released from Non-Circulating Supply Contracts

For those immersed in the energetic world of cryptocurrency, the past week has been a roller coaster ride, stirred by significant bearish pressure.

Chainlink (CRYPTO: LINK) has faced immense selling pressure over the past week, shedding just shy of a tenth of its value.

As bearish dynamics continue to grip the crypto market, recent on-chain developments suggest the possibility of further obstacles in the coming days.

Crypto analyst Ali Martinez highlighted the mass movement of Chainlink tokens to centralized exchanges within a day, using Santiment’s “Supply on Exchanges” metric.

According to the data, over 18.77 million LINK tokens, valued at approximately $256.2 million, were moved to cryptocurrency exchanges.

This marked one of the largest single-day movements for the Chainlink token in recent months.

Additionally, SpotOnChain reported the release of 21 million tokens from Chainlink’s non-circulating supply contracts on June 21.

Moreover, 18.25 million LINK tokens were moved to Binance from these contracts.

The introduction of these large volumes of funds could potentially amplify market volatility, leading to significant price fluctuations.

Given the vastness and the endpoint of these transfers, there’s a heightened prospect for increasing selling pressure that might contribute to a downward trajectory for LINK’s price.

Currently, the altcoin trades just above the $13.6 mark, down over 3% in a day.

However, zooming out reveals a fall from about $15 to $13.5 over the past week.

A continuation in the current selling pressure could potentially expedite a further downturn for LINK, bringing it to the $12 neighborhood for the first time in over a month.

Despite the sell-off, Chainlink remains a top 20 cryptocurrency, boasting a market capitalization of over $8.27 billion.

News source：https://www.kdj.com/cryptocurrencies-news/articles/chainlink-link-downward-spiral-m-tokens-released-circulating-supply-contracts.html

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