Chainlink (LINK) has been one of the stronger performers in the market, rallying more than 109% over the past year. Even in the last three months alone, the LINK price has gained about 68.5%.

But the past week has revealed weakness, with the token slipping more than 9%, and both on-chain metrics and technical charts now suggest the year-long uptrend may be losing steam, at least for now.

Profit-Taking Pressures Mount As Holders Sit in Gains

One of the clearest signs comes from the percentage of LINK supply in profit, which is still hovering at historically high levels.

As of August 29, nearly 87.4% of the circulating supply is in profit, close to the recent peak of 97.5% seen on August 20. That peak coincided with the LINK price rally to $26.45, which quickly retraced by over 6% to $24.82 the following day.

A look further back shows the same pattern. On July 27, the supply in profit stood at 82.8%, just before LINK corrected from $19.23 to $15.65, making a 19% dip. The current reading near 87% is again uncomfortably high, hinting at elevated risks of profit-taking.

Additionally, the Chaikin Money Flow (CMF), which tracks capital inflows and outflows, has trended downward since August 22 and finally slipped below zero on August 29 for the first time since August 6. This shift into negative territory signals fading buying pressure and capital inflows, strengthening the case for a potential pullback.

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Chainlink (LINK) Price Action Points To Bearish Exhaustion

The daily chart reinforces this caution. The LINK price is currently trading at $23.31, sitting inside an ascending broadening wedge pattern — a structure often associated with loss of upward momentum near the end of a bullish phase. This “megaphone” like pattern is infamous to kickstarting bearish reversals, a risk that now looms over LINK.

The key support to watch is $22.84. A decisive break below this level would expose the next downside target at $21.36, and falling beneath that could risk a deeper retracement. That could be anywhere in the 6% to 19% percent range, as experienced during the local “Supply In Profit” peaks.

On the other hand, if the LINK price manages to reclaim $25.96, it may still attempt another move higher.

But even such a recovery would not fully overturn the broader exhaustion signs unless the token can break convincingly above $27.88.