Chainlink Dips 17.2% as On-Chain Metrics Signal Profit-Taking Peak

Chainlink’s native token, LINK, has dropped by 17.2% since July 28, aligning with a broader 4.9% decline in Bitcoin’s price. The recent sell-off has been marked by heightened on-chain activity, with metrics such as the Mean Coin Age and MVRV ratio signaling increased distribution and reduced holder profits. Santiment data suggests that the wave of profit-taking may now be nearing an end, offering a potential reprieve for bulls [1].

The token’s price has settled near a critical demand zone at $15.5, a level that had previously acted as a consolidation point in early July before a rally. This zone is reinforced by the 50-day moving average and the Value Area Low from early July, which sits at $15.7. A successful defense of this area could serve as the first test for a bullish reversal. However, the current market structure remains bearish, with the RSI below the neutral 50 level and the On-Balance Volume receding. These indicators suggest that sellers still hold the upper hand [1].

Some traders have noted a 6.1% rebound in recent trading sessions, interpreted as a potential early signal of a trend shift [2]. While encouraging, this movement has not yet confirmed a reversal. The token remains in a consolidation phase, with uncertainty around whether buyers can reclaim control at key support levels. The broader altcoin market remains under pressure, with LINK’s performance closely tied to overall investor sentiment in the sector. A meaningful recovery in LINK is likely contingent on a broader crypto market upturn, including a sustained rally in Bitcoin and other top-tier assets [2].

For now, LINK’s prospects remain tied to both on-chain dynamics and macroeconomic conditions. Without a strong catalyst—such as a major partnership, protocol upgrade, or regulatory development—the token is unlikely to see a sustained reversal. Investors are advised to monitor key price levels and on-chain indicators for further clarity. A decisive move above $15.5 could signal the start of a new bullish phase, but until then, caution is warranted [1].

Source:

[1] AMBCrypto, Chainlink drops 17% in a week – LINK's recovery possible only if..., https://ambcrypto.com/chainlink-drops-17-in-a-week-links-recovery-possible-only-if/

[2] Facebook, Doge long position near resistance line, https://www.facebook.com/groups/137****66946104/posts/1668320307173158/