Chainlink Analysis on June 4, 2025: Recovery from Oracle Glitch and Bullish Potential

Chainlink shows stability on June 4, 2025, after a 7.7% drop from an oracle glitch. TVS growth and institutional support bolster a bullish outlook.

On June 4, 2025, Chainlink (LINK), the native token of the decentralized oracle network, shows signs of recovery following recent volatility caused by an oracle glitch on May 30, 2025. LINK is currently trading between $15.5 and $16, reflecting relative stability after a 7.7% drop to $14.54. Daily trading volume has risen 5.3% to $1.1 billion, indicating sustained market interest. Despite recent challenges, growth in Total Value Secured (TVS) and institutional support paint a positive outlook for Chainlink. The oracle glitch on May 30 triggered $532K in liquidations across DeFi protocols, temporarily shaking investor confidence. However, Chainlink’s team swiftly addressed the issue with a rapid update and enhanced security measures, helping to rebuild trust and stabilize the price above $15. From a technical perspective, Chainlink is consolidating around $15.5, with the Relative Strength Index (RSI) at approximately 47, suggesting potential for building bullish momentum. Analysts believe breaking the $16.5 resistance could drive the price to $20 or even $25 by the end of June. However, the $14 support level is critical, and a breach could lead to a correction down to $12.7. Whale activity has also been notable in the Chainlink market. A recent transfer of 6.71 million LINK, worth about $101.4 million, has sparked discussions about potential accumulation or large-scale selling. A 299% surge in large transaction volume indicates high whale activity, which could impact the price. The growth of Chainlink’s DeFi ecosystem is a key factor supporting the price. The Total Value Secured (TVS) reached over $66 billion in May, reflecting growing trust in Chainlink’s oracles across DeFi, gaming, and cross-chain interoperability applications. Recent integration with Solana via the CCIP protocol and partnerships with financial institutions like SWIFT and JPMorgan have strengthened institutional backing. Additionally, Coinbase’s use of Chainlink’s Proof of Reserve for $4.6 billion in cbBTC reserves has solidified its position. However, Chainlink faces challenges. Regulatory risks, particularly from the SEC, could impact DeFi protocols. Token unlocks in June may also increase selling pressure. Competition from blockchains like Solana and Ethereum remains a threat. Overall, Chainlink’s outlook is bullish due to its TVS growth, institutional integrations, and scalable technology. Investors should monitor regulatory developments, whale activity, and technical trends. With its critical role in DeFi infrastructure, Chainlink remains a key player in the cryptocurrency market.