Chainlink saw waves of on-chain movement that highlighted an intent to sell from holders
The 30-day exchange position change shifted positively, which could be bad news for LINK bulls in the coming days
Chainlink [LINK] was one of the best performers among the crypto market’s top 20 assets. Over the past week, it has registered a 13.2% price gain.
This recovery came after the losses posted ten days ago, when LINK slid from $13.38 on the 19th of June to reach $10.94 on the 22nd of June.
This sell-off followed Bitcoin’s [BTC] drop to $99k, following escalating tensions in the Israel-Iran conflict and the subsequent U.S. bombing of Iran.
Since then, the market sentiment appeared to have recovered. However, Chainlink holders did not show long-term conviction.
On-chain metrics have noted another flurry of token movement following the recent bounce, which could be an ominous sign for bulls in the short term.
Another local top for Chainlink?
Source: Santiment
Historically, the development activity of Chainlink has been high among the DeFi tokens. Since mid-April, the dev activity has been trending downward.
This slowdown was cause for some concern for investors. Despite the considerable drop-off, LINK’s dev activity is still relatively high compared to most other altcoins, so investors need not worry too much.
One factor that will worry the bulls is the persistent sell-off signals that accompanied a Chainlink price move to the $12 demand zone.
The dormant circulation saw a huge spike on the 14th of March, when the token attempted to bounce higher from the $12 support.
Another spike in dormant circulation came on the 20th of June, when the price was dropping toward the $11 mark.
High dormant circulation indicates a flurry of on-chain token movement, which generally indicates intent to sell. The recent price drop came alongside a wave of selling, which underlined a lack of faith from holders.
Moreover, an examination of the mean coin age showed that there was no considerable network-wide accumulation.
Holders were willing to take profits on price bounces toward the $16 level, and also panicked as the price approached local lows. It was another sign of weak HODLer mentality.
Source: Glassnode
The exchange net position change tracks the change in LINK supply held in exchange wallets. A positive change implies more inflows to exchanges, which is usually a sign of high selling pressure.
In late 2024 and early 2025, the positive net position change indicated profit-taking pressure. Similarly, the Chainlink mini-rally to $15.5 in late March was met with increased selling.
On the 20th of June, the exchange net position change pivoted green once again, underlining another wave of selling.
At the time of writing, the net position change remained positive, which was a worrying sign for LINK bulls.
Source: LINK/USDT on TradingView
Chainlink was trading at the $13.4 local resistance, and the $14 region was another supply zone nearby.
With key resistances overhead and increased selling pressure from holders over the past ten days, it appeared likely that LINK might have formed another local top and could trend downward in the coming days.