The cryptocurrency market has been experiencing a significant downturn, with Chainlink (LINK) being one of the hardest hit. In the past week, LINK has lost nearly 10% of its value, and the bears seem to still be in control. According to popular crypto analyst Ali Martinez, a substantial amount of Chainlink tokens have been transferred to centralized exchanges in the past day, suggesting that investors may be offloading their assets.

The "Supply on Exchanges" metric from Santiment shows that over 18.77 million LINK (worth approximately $256.2 million) were transferred to cryptocurrency exchanges in the past day. This significant transfer represents one of the largest single-day movements for the Chainlink token in recent months. Additionally, a report from SpotOnChain revealed that 21 million tokens were unlocked from Chainlink's non-circulating supply contracts on Friday, June 21.

This substantial token unlock presents a case of supply inflation, which can impact the value of the token, especially if a sell-off occurs. Moreover, these fund movements can precipitate an increase in market volatility and possibly lead to price fluctuations. Given the magnitude and destination of these transfers, there is a greater likelihood of increased selling pressure, which can drive down the price of LINK.

As of this writing, the price of Chainlink is barely holding above $13.6, having declined by more than 3% in the past day. If the recent selling pressure continues, further decline might be on the horizon for LINK's price. This could see the cryptocurrency make a return to around the $12 price zone for the first time in more than a month.

Despite the current bearish trend, Chainlink remains one of the top 20 largest cryptocurrencies in the sector, with a market capitalization of over $8.27 billion. However, investors should be cautious and conduct thorough research before investing in any cryptocurrency, as the market can be highly volatile and unpredictable.