Chainlink has recently made a strong comeback in the market, gaining over 13% in the past week. However, on-chain data now paints a concerning picture for LINK’s short-term trajectory. Despite its price recovery, investor behavior suggests that the rally may be losing momentum near the $13.4 resistance level.

Increased token movement, selling pressure from holders, and a lack of network-wide accumulation are pointing to a potential local top forming for Chainlink.

Short-Term Gains, But Long-Term Conviction Missing

LINK’s recent price action reflects a recovery from last week’s drop, which was triggered by geopolitical unrest. After falling from $13.38 to $10.94 between June 19 and 22, Chainlink rebounded along with the broader crypto market. Yet, on-chain trends show that many holders are still approaching LINK with caution.

Rather than accumulating, data shows LINK holders are actively moving tokens onto exchanges—a sign that they may be preparing to sell into strength rather than holding for the long term.

Dormant Circulation Spikes Signal Selling Intent

One of the clearest indicators of potential trouble for bulls is the spike in dormant circulation. Dormant coins that haven’t moved for a long time are now being transferred, usually a sign that holders are getting ready to sell.

There were notable spikes in token movement on March 14 and again on June 20, both coinciding with LINK’s attempts to bounce from key support levels. The behavior suggests holders lack confidence in the sustainability of short-term rallies.

No Signs of Strong Accumulation

Another concern is the absence of network-wide accumulation. The mean coin age, which rises when tokens remain stationary in wallets, has shown no significant increase. This means most holders aren’t sitting on their LINK tokens for long—they’re actively participating in short-term trades.

Moreover, historical price action shows that LINK holders tend to sell as the price nears the $16 level, and also react quickly to downturns. This trend has continued into the current rally, highlighting weak holding behavior across the network.

Exchange Net Position Change Turns Positive Again

Data from Glassnode confirms that Chainlink is experiencing another round of exchange inflows. When more LINK tokens are transferred to exchange wallets, it usually indicates that holders are preparing to sell.

This trend was seen in late 2024 and early 2025 during other mini-rallies and again during LINK’s recent climb. On June 20, the exchange net position change turned positive and has stayed that way, reinforcing the view that selling pressure is building.

Technical Analysis Shows Nearby Resistance

From a technical standpoint, Chainlink is currently trading at a key resistance level around $13.4. A stronger supply zone sits just above in the $14 region. If bulls fail to clear this area with volume, a reversal could follow, especially considering the rising selling activity and weak accumulation.

The combination of resistance overhead, on-chain sell signals, and trader behavior suggests that LINK may be topping out once again—potentially setting the stage for a short-term pullback.

Conclusion

While Chainlink has outperformed many top assets in recent days, underlying on-chain signals suggest caution is warranted. Rising exchange inflows, spikes in dormant coin activity, and weak long-term holding behavior all point toward a possible price reversal.

Unless bulls manage to flip the $14 zone into support and reduce the selling pressure, LINK could struggle to maintain its current levels. A drop back to $12 or lower remains a realistic scenario if profit-taking continues.