Chainlink (LINK) has been riding high, boasting an impressive 100%+ rally over the past year. But as of August 31, 2025, signs of exhaustion are beginning to emerge in the charts, casting a shadow over the token’s bullish momentum. Crypto analysts are now scrutinizing a slew of on-chain metrics and technical indicators that imply the rally might be running out of steam.
Cracks in the Rally
Chainlink’s year-long surge has been nothing short of remarkable, with LINK doubling in value and capturing the attention of investors far and wide. Yet, the latest data reveals potential vulnerabilities. According to crypto analyst and market watcher, Sarah Liu, “We’ve noticed a declining trend in trading volume, which often points to waning interest or profit-taking behavior among traders. When volumes dry up, it can signal a lack of conviction in the continuation of a rally.”
Adding to the mix, on-chain data indicates a rise in LINK tokens being moved to exchanges. This pattern often suggests that holders are preparing to sell, which could contribute to downward pressure on prices. “It’s a classic warning sign,” Liu notes, “when more tokens head to exchanges, it typically means people are looking to liquidate at these higher prices.” This trend is reflected in the CoinDesk 20 Performance Update, which noted a recent decline in LINK’s performance.
Technical Indicators Flash Warnings
Beyond on-chain signals, technical indicators are also raising eyebrows. The Relative Strength Index (RSI), a popular tool among traders, has begun to dip into overbought territory, suggesting that LINK’s recent gains might be overstretched. “The RSI has been hovering above 70 for some time, which many traders interpret as a cautionary flag,” explains crypto strategist Mark Feldman. “When assets are overbought, they often face corrections.”
Moreover, LINK’s price action is showing signs of forming a double-top pattern—a bearish signal that could herald a reversal. This setup occurs when an asset reaches a peak price level, retraces, and then climbs back to a similar peak before falling again. “A double-top is one of those patterns that traders watch closely,” Feldman adds. “It can be a harbinger of further declines if confirmed.”
Historical Context and Market Sentiment
Historically, Chainlink has been a darling of the crypto world, thanks to its pioneering role in decentralized oracle networks. Its technology connects smart contracts with real-world data, making it indispensable in the decentralized finance (DeFi) space. Yet, the crypto market is notoriously fickle, and past performance is no guarantee of future success. In a related development, the Bitwise Files S-1 for Chainlink (LINK) ETF highlights the growing interest in institutional investment, which could impact market sentiment.
In the broader market, sentiment remains mixed. While some investors remain optimistic about LINK’s long-term potential, others are cautious. “The market’s mood is a bit of a mixed bag right now,” says crypto analyst Jamie Greene. “On one hand, there’s excitement about ongoing developments and partnerships; on the other, there’s a palpable fear of a broader market correction.”
Looking Ahead
As Chainlink navigates these choppy waters, the coming months will be crucial for its trajectory. Investors will be watching for any shifts in trading volumes, on-chain movements, and technical setups. “It’s a waiting game now,” Greene remarks. “Traders will want to see if LINK can establish a new support level, or if it’s headed for a deeper pullback.”
Ultimately, while LINK’s impressive rally has been a highlight, the current indicators suggest caution. Whether this marks a temporary pause in its ascent or the beginning of a more pronounced downturn remains to be seen. As the crypto market unfolds, one thing is certain: LINK’s journey will continue to captivate the attention of traders and analysts alike.
Source
This article is based on: Chainlink (LINK) Price Uptrend Likely To Reverse as Charts Hint at Exhaustion
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
