Chainlink bulls beware! – Could LINK be topping out at $13.4?

Key Points

1. Chainlink (LINK) has been a top performer among the top 20 crypto assets, gaining 13.2% in the past week after recovering from a drop to $10.94 on June 22.

2. Development activity for Chainlink has been trending downward since mid-April, raising concerns among investors despite still being relatively high compared to other DeFi tokens.

3. Dormant circulation spikes on March 14 and June 20 indicate significant on-chain token movement, often associated with selling pressure during price bounces.

4. Historical patterns show profit-taking pressure during price rallies, such as the mini-rally to $15.5 in late March, which was met with increased selling.

5. The article suggests that LINK may have formed another local top at $13.4 and could trend downward in the coming days.