Altcoins News

Story: Chainlink Supply Plunges to Multi-Year Lows as 90% of Holders Stay Profitable

By Pankaj K

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Profitability Reaches Critical Levels. Glassnode data shows that as of early September, 87.5% of LINK’s circulating supply is in profit.

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Exchange Reserves Continue to Decline. Another bullish factor is the rapid drop in Chainlink’s exchange reserves.

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Short-Term Weakness, Long-Term Strength. Despite the favorable on-chain setup, LINK is currently consolidating after its August rally.

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Why Chainlink’s Setup Matters. Chainlink plays a key role in decentralized finance (DeFi) and blockchain infrastructure, powering…

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Outlook for LINK. If demand returns, analysts suggest LINK could break above the $25–$27 resistance zone, opening…

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Chainlink (LINK) is entering a pivotal stage as key on-chain metrics align to suggest the possibility of a bullish breakout.

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This combination of profitability and reduced available supply is unusual and could trigger faster price appreciation if new buyers enter the market.

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Most holders are in a comfortable position, which reduces the incentive to sell at current levels.

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In Chainlink’s case, this widespread profitability suggests that holders are waiting for higher prices rather than rushing to cash out.

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Another bullish factor is the rapid drop in Chainlink’s exchange reserves. According to CryptoQuant, reserves have fallen to just 161.5 million LINK, marking a multi-year low.

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Since mid-2023, reserves have been on a steady downward trend even as LINK’s price climbed toward $23.7.

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When supply on exchanges is limited, price reactions to new demand tend to be sharper. In past cycles, falling reserves have often signaled bullish phases, as scarcity amplifies…

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If LINK sees even modest inflows of new demand, this constrained liquidity could fast-track the token to higher price levels.

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Despite the favorable on-chain setup, LINK is currently consolidating after its August rally. At press time, the token was trading at $23.58, slightly down from its recent highs.

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The daily chart shows price slipping below both the 9-day and 21-day Simple Moving Averages, signaling short-term weakness. The Relative Strength Index (RSI) stands at 52.

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