Chainlink Price Prediction: Will LINK Hit $13 Peak or Face Correction?

Chainlink (LINK) has seen impressive gains, but on-chain data suggests a potential pullback. Is the $13 peak a temporary high, or can LINK break through?

Chainlink Price Prediction: Will LINK Hit $13 Peak or Face Correction?

Chainlink (LINK) has been a top performer, but recent on-chain data suggests holders are showing signs of weak conviction. Is the $13 peak a temporary high, or can LINK break through?

On-Chain Metrics Point to Possible Consolidation

Chainlink has shown impressive performance recently, but on-chain metrics tell a different story. While LINK saw a 13.2% price increase over the past week, this recovery comes after a drop from $13.38 on June 19 to $10.94 on June 22. This volatility, triggered by broader market tensions, has left holders feeling uneasy.

Dormant circulation experienced spikes on March 14 and June 20, signaling potential selling pressure. High dormant circulation indicates a flurry of on-chain token movements, typically associated with selling intentions. The recent price drop was accompanied by a wave of selling, highlighting a lack of confidence among holders.

Weak HODLer Mentality

An examination of the average coin age showed no considerable network-wide accumulation. Holders were ready to take profits when the price rebounded and panicked as the price approached local lows. This behavior is a clear indicator of a weak HODLer mentality.

The exchange net position change, which tracks fluctuations in LINK supply held in exchange wallets, remains positive. A positive change implies more inflows to exchange platforms, typically a sign of strong selling pressure. This is a concerning sign for LINK bulls.

Chainlink at a Crossroads: Bullish Continuation or Correction?

Chainlink is currently trading near the $13.4 local resistance, with the $14 region acting as another supply zone. Given the key resistances overhead and increased selling pressure from holders, it seems likely that LINK might have formed another local top and could trend downward in the coming days.

My Take: Proceed with Caution

While Chainlink has demonstrated significant potential, the current on-chain metrics suggest caution. The lack of long-term conviction among holders and the persistent selling signals could hinder further price appreciation. Keep a close eye on these indicators before making any investment decisions.

So, will Chainlink hit that $13 peak and keep climbing? Maybe. But with these mixed signals, it might be wise to buckle up for a bit of a rollercoaster ride. Happy trading, folks!