- Chainlink development activity is booming, outpacing Ethereum by 50%, boosting investor confidence.
- However, heavy profit-taking near key resistance levels around $15.5-$16.5 is creating a major hurdle for further price gains.
Chainlink (LINK), a leading Ethereum-based asset, is showing promising signs of growth driven by exceptional developer momentum. According to recent data from Santiment, Chainlink’s development activity over the past 30 days has surged to levels 50% higher than Ethereum’s, underscoring strong interest and innovation within its ecosystem. This spike in developer engagement has certainly caught the attention of long-term investors, fueling optimism about LINK’s price potential.
Despite this encouraging on-chain development, Chainlink faces a notable hurdle that could temper its upward momentum: increased profit-taking by investors. Santiment’s analysis highlights a significant surge in the dormant circulation metric on April 25th, indicating that many tokens previously inactive for over 180 days were suddenly moved, pointing to a wave of selling activity. This spike coincided with a dip in the Mean Coin Age (MCA), a measure that reflects the average holding period of coins. The sharp MCA decline signals that holders who had been accumulating LINK for months started to cash in as the price approached the critical $15.5 resistance level.
Also read: Ethena (ENA) Price Rally: Why Caution Is Warranted Despite Bullish Momentum
This profit-taking behavior has presented a stumbling block for bulls attempting to push Chainlink’s price past the $16.5 mark. While the development activity paints a picture of a vibrant and growing project, the selling pressure reveals a cautious market sentiment, with holders hesitant to commit beyond key resistance levels.
Another crucial metric weighing on LINK’s prospects is the high percentage of supply currently in profit. At present, around 76% of LINK holders are in the green. Historically, similar spikes in selling occurred when this figure was much lower—at 65% and 56%—suggesting that many investors are now eager to lock in gains given the strong price run-up.
In recent days, Chainlink has retested the $15.5 zone, which shifted from resistance to support. Bulls remain determined to break through to higher levels, but the interplay of strong development and cautious profit-taking will likely dictate LINK’s near-term trajectory. For Chainlink to rally decisively past $16.5, sustained buying interest and reduced selling pressure will be critical in overcoming these psychological and technical hurdles.
