Chainlink Could Break Above $16.5 – But Bulls Face a Major Obstacle

Chainlink (LINK) stands out with developer activity that surpasses even Ethereum. Still, bullish efforts are hitting a wall: massive profit-taking and a lack of accumulation are holding back further growth. According to data from Santiment, Chainlink recorded 50% more developer activity over the past 30 days than Ethereum. This metric tracks real software development and protocol upgrades across blockchain ecosystems, making it a strong indicator of long-term potential.

🛠️ Chainlink Leads in Development – But Price Struggles to Break Out This surge in development has caught the attention of long-term investors, who often look at technical progress as a sign of future value. Yet, despite this strength, LINK has so far failed to break resistance at $16.5. In fact, the network is currently seeing heavy profit-taking, raising the question: Can a project with such strong fundamentals sustain its growth if traders lack conviction?

📉 On-Chain Data Reveals Waves of Selling A key metric, dormant circulation, spiked significantly on April 25. This data shows how many long-inactive tokens were suddenly moved – often a sign of profit realization by long-term holders. The spike in dormant circulation coincided with a drop in the Mean Coin Age (MCA) – another indicator that shows older LINK tokens were being sold off as the price neared $15.5. 🔹 A similar trend occurred in March, suggesting that investors are hesitant to hold LINK longer unless it decisively breaks above key resistance levels.

💰 76% of Holders Are in Profit – And That Could Be a Problem Another pressure point for LINK’s price is the high percentage of holders currently in profit. At the time of writing, 76% of LINK holders are sitting on gains, which raises the risk of further profit-taking as the price rises. Interestingly, previous selloffs in March and April happened when only 65% and 56% of holders were in profit. That makes the current number even more significant and suggests increased risk of selling.

🧭 Market Seeks Direction as Bulls Test Support In recent days, LINK retested the $15.5 level, which previously acted as resistance and is now being tested as a support zone. Bulls are trying to build momentum – but without strong conviction so far. Despite Chainlink’s dominance in development and its tech-driven edge over competitors, the market remains cautious. There’s no clear accumulation, and holders continue to take profits at resistance levels.

💬 Will LINK Hold Support at $15.5 and Bounce Back – or Will Profit-Taking Win Again?

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