Chainlink [LINK] has emerged as one of the top-performing assets among the crypto market's top 20 coins, notching a 13.2% gain over the past week. This rebound follows a sharp correction that saw LINK fall from $13.38 on June 19th to $10.94 by June 22nd—a drop triggered by market-wide panic after Bitcoin [BTC] plunged to $99,000 amid escalating geopolitical tensions between Israel and Iran, and a retaliatory U.S. strike.
Since then, broader market sentiment has shown signs of stabilization. However, Chainlink’s on-chain data suggests that investor confidence remains fragile, raising questions about the sustainability of LINK's recent rally.
Despite the price recovery, several key metrics indicate that Chainlink holders may not be fully convinced of long-term upside. A notable uptick in token movement following the recent bounce hints at growing sell-side pressure, casting doubt over the possibility of a sustained uptrend.
Dormant circulation, a metric tracking previously inactive coins that are now being moved, spiked significantly on March 14th when LINK bounced from the $12 region. Another surge occurred on June 20th as LINK approached the $11 level. Such spikes often signal intent to sell, as long-term holders begin moving coins to potentially exit the market.
Mean coin age, which typically rises during periods of accumulation, has shown no significant increase, suggesting that investors are neither accumulating nor holding for the long term. Instead, many appear to be cashing out during short-term rallies—especially around the $16 mark—and reacting with fear during price dips. This behavior underscores a weak HODLer mentality.
Chainlink has historically ranked among the most active DeFi projects in terms of development. However, since mid-April, developer activity has been on a steady decline. While still comparatively high relative to most altcoins, the slowdown could be a concern for long-term investors, especially if it persists.
The exchange net position change, which monitors the flow of LINK tokens into exchange wallets, turned positive on June 20th. Increased exchange inflows often correlate with elevated selling pressure, suggesting that holders were preparing to liquidate their assets. Similar trends were seen during past rallies—such as the mini-run to $15.5 in March—where price gains were met with notable profit-taking.
At the time of writing, LINK was trading near the $13.4 resistance level, with another strong supply zone around $14. These overhead barriers, combined with mounting sell-side activity and weak investor conviction, suggest that Chainlink may have formed a local top. A pullback in the coming days appears likely unless bulls can reclaim key resistance levels with strong volume and renewed accumulation.
While Chainlink’s recent performance has been impressive, underlying on-chain indicators paint a cautious picture. Without strong accumulation or long-term holding behavior from investors, LINK may struggle to break through the $14–$15 resistance region. Traders should watch for signs of renewed buying interest and decreasing exchange inflows before anticipating further upside.
June 2025, Cryptoniteuae