Chainlink bulls be careful! – Can LINK reach a peak at $13.4?

Chainlink (LINK) has proven itself to be one of the best-performing coins in the top 20 of the crypto market, recording a bullish increase of 13.2% in the past week.

This recovery comes after LINK experienced a significant bearish trend, dropping from 13.38 USD on June 19 to 10.94 USD on June 22. This sell-off occurred after Bitcoin (BTC) fell to 99,000 USD, due to escalating tensions in the Israel-Iran conflict and the US airstrikes on Iran.

Since that time, the market sentiment seems to have recovered. However, investors holding LINK have not yet shown long-term confidence in the bullish trend.

On-chain metrics have recorded a notable token movement following the recent recovery, which may be an unfavorable sign for the bulls in the short term.

Will Chainlink form another local peak?

Historically, the development activity of Chainlink has always been at the forefront among DeFi tokens. However, since mid-April, development activity has shown a downward trend, raising concerns among investors. Although the decline is significant, the development activity of LINK remains relatively high compared to most other altcoins, so investors do not need to worry too much.

Source: SantimentOne notable factor is the continuous sell-off signals accompanying Chainlink's price movement towards the support zone of 12 USD. The potential circulation recorded a significant jump on March 14, when the token attempted to recover from the support level of 12 USD. Additionally, another jump in potential circulation occurred on June 20, when the price dropped close to the level of 11 USD.

High hidden circulation indicates an on-chain token movement, often signaling a selling intention. The recent price drop accompanied by a wave of sell-offs reflects a lack of confidence from holders.

Moreover, the analysis of the average age of coins shows that there is no significant accumulation across the network. Investors are willing to take profits when the price recovers to the level of 16 USD and there are also signs of panic as the price approaches local low levels, indicating that the holder sentiment is still weak.

Source: GlassnodeThe change in net position on the exchange tracks the fluctuations in the supply of LINK held in exchange wallets. A positive change indicates more inflows to the exchange, often a sign of high selling pressure. At the end of 2024 and the beginning of 2025, the positive change in net position showed profit-taking pressure. Similarly, Chainlink's mini recovery to 15.5 USD at the end of March faced increased sell-offs.

On June 20, the net position change on the exchange turned green again, emphasizing another wave of sell-offs. At the time of writing, the net position change remains positive, which is a concerning sign for those speculating on LINK.

LINK/USDT price chart | Source: TradingViewChainlink is currently trading at a local resistance level of 13.4 USD, while the 14 USD area is a nearby supply zone. With major resistances above and increased selling pressure from holders over the past ten days, it is likely that LINK has formed another local peak and may trend bearish in the coming days.

Mr. Giáo