Selling pressure dominates Chainlink (LINK), but here’s why it could actually be a bullish signal

LINK’s near-term price drop between $17 and $20 could be the calm before the storm, as analysts expect a huge rally in December.

Chainlink’s native token, LINK, has yet to fully recover from the October market drop that briefly dragged the crypto asset below $16. But it gained 3% over the past week to trade around $18.5.

Alphractal founder Joao Wedson now believes a potential upside breakout could emerge before the end of the year, despite broader market weakness in 2025.

LINK may be near a local bottom

The MVRV Z-Score, a key on-chain metric used to assess whether an asset is undervalued or overvalued, has historically provided strong buy signals for LINK when it turned negative. However, the measure is currently trending downward, indicating a more cautious mood among investors amid muted demand for cryptocurrencies this year.

LINK remains well below the euphoric MVRV levels of the previous cycle, leaving traders wondering when the enthusiasm will return.

Meanwhile, the buy/sell pressure delta has proven to be another reliable indicator for crypto assets. Currently, the price is in negative territory, often indicating a local price bottom and potential for a recovery. Despite this, Wedson emphasized the importance of cross-verifying this signal with other on-chain models that map critical support and resistance zones.

After the sharp October correction, large short liquidation clusters have built up around $26.4 and $28.3. These levels could trigger a quick upward move if price momentum revisits these zones.

On a technical level, the Dynamic Moving Average (MA) and price ratios remain supportive. Since 2024, every instance of the token falling below its major moving averages has marked a solid accumulation phase. Encouragingly, LINK currently remains above the 720-day MA.

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Should it fall below that threshold, Wedson explained that it’s best to wait at least two weeks before concluding whether it’s a real outage or a temporary bull trap. In summary, while the speculative on-chain data for LINK is still somewhat weak, it remains net positive. Selling pressure has largely dominated, but such phases often precede the recovery. With large short positions exposed and price stability above the major MAs, a decisive move above $25 could serve as the spark that reignites investor optimism.

Ready for launch?

Crypto analyst Altcoin Sherpa shared a cautiously optimistic prospect, considering he described it as “a pretty decent looking coin” in his recent post on He noted that LINK’s price action will likely remain between $17 and $20 in the near term. After this consolidation, the asset could prepare for another leg higher once accumulation within this zone is complete.

Another analyst compared Chainlink’s price moves with the M2 Money Supply, using an offset of about 320 days, and said a new phase of the bull market could begin in late November or early December, potentially lasting until May 2026.

According to the analyst, LINK’s best reflects the correlation with M2 using this offset, although the pattern is also considered relevant to the broader crypto market. He noted that the largest liquidation occurred just before a major expansion of M2, supporting the narrative that the next phase of the bull market could be particularly intense. However, the analysis also showed that volatility and uncertainty are expected to persist until the end of November.