Chainlink (LINK) is showing positive momentum, gaining 13.2% over the past week following a significant drop.
Chainlink's Rise and Its Causes
Chainlink (LINK) has staged an impressive comeback among the crypto market’s top 20, recording a 13.2% gain over the past week. This bounce follows a sharp drop when LINK fell from $13.38 on June 19 to $10.94 by June 22, driven down by Bitcoin (BTC)'s decline to $99,000, fueled by heightened tensions in the Israel-Iran conflict and a subsequent U.S. airstrike in Iran.
Token Data Indicates Risks
A closer look at LINK’s on-chain data shows troubling signs for bulls. Notably, dormant circulation spiked significantly on March 14 when LINK attempted a bounce from the $12 support. Another large spike occurred on June 20 as prices slid toward $11, suggesting large holders moved tokens, likely to sell. This uptick in dormant circulation often signals a wave of profit-taking or panic selling.
Current Market Situation and Predictions
At the time of writing, Chainlink trades at the $13.4 local resistance, with a key supply zone around $14. Given the overhead resistance, profit-taking trends, and recent on-chain signals, LINK may be at risk of forming another local top. If selling pressure continues, traders could see a pullback in the coming days.
Chainlink shows positive price changes, yet the influence of market factors and current token holder behavior suggests a cautious approach to short-term investments.
