Key Takeaways:
- LINK surged 13.2% this week but faces overhead resistance at $13.4–$14.
- Dormant circulation and mean coin age suggest weak HODLer conviction.
- Exchange inflows signal continued selling pressure from holders.
Chainlink [LINK] has staged an impressive 13.2% recovery this past week, rebounding from a recent dip triggered by broader crypto market volatility. Yet, despite the bounce to $13.4, on-chain activity suggests that bulls may be running into headwinds once again.
LINK Rebounds From Geopolitical-Driven Crash
On June 19, LINK traded at $13.38 before a steep drop to $10.94 on June 22. This decline mirrored Bitcoin’s [BTC] fall to $99K, amid geopolitical escalations involving Iran, Israel, and the U.S. Since then, both market sentiment and LINK’s price have recovered—but not without warning signs.
The rebound brought LINK to the $13.4 resistance level, brushing close to a supply zone around $14. However, persistent exchange inflows and dormant token movements point to potential upcoming selling pressure.
Spike in Dormant Circulation Hints at Selling Intent
One key bearish metric is dormant circulation. Historically, LINK has seen spikes in token movement during both rallies and downturns. Notably, on June 20—when LINK was sliding toward $11—a sharp increase in dormant circulation occurred. This typically signals old holders moving tokens to sell.
Furthermore, Chainlink’s mean coin age has stagnated, indicating little network-wide accumulation. Many holders seem to be short-term focused, opting to take profits or cut losses rather than HODL—a trend seen in both March and June corrections.
Exchange Inflows Reinforce Bearish Outlook
Glassnode’s exchange net position change metric showed a troubling sign for LINK bulls. The indicator turned green on June 20, reflecting an uptick in LINK deposits to centralized exchanges. Historically, this aligns with selling activity, as seen during Chainlink’s March rally and late 2024 profit-taking.
As of now, this metric remains positive, suggesting that holders are positioning for more exits rather than accumulation.
Chainlink is currently hovering near strong resistance at $13.4 and $14. With high selling pressure and bearish on-chain indicators in play, LINK may have formed another local top. Cautious trading is advised as the altcoin could face renewed downward momentum in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: LINK Price Holds $12.66 Support as Chainlink Hits ATH in Holders, Mastercard Deal Sparks Rally Hopes
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
