|
Getting your Trinity Audio player ready...
|
- 87.5% of LINK holders are currently in profit, limiting selling pressure.
- Exchange reserves are at multi-year lows, reducing liquidity.
- Technical consolidation above $23 signals strong support ahead of potential rally.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Chainlink (LINK) is showing signs of a potential breakout as market conditions tighten. According to Glassnode, 87.5% of circulating LINK is now in profit, marking a sharp increase since July when the token traded under $15. Prices surged above $25 in August, rewarding long-term holders and reducing their incentive to sell at current levels. This high profitability among holders minimizes short-term selling pressure, creating a favorable environment for renewed upward momentum.
The bullish case for Chainlink as supply hits critical low and 90% holders see profitshttps://t.co/zY4ZqLL34X
— John Morgan (@johnmorganFL) September 1, 2025
Meanwhile, exchange reserves are at multi-year lows. CryptoQuant data shows only 161.5 million LINK available on exchanges—a significant drop since mid-2023. With fewer tokens available for immediate trading, any fresh demand could trigger amplified price movements. Historically, reduced liquidity combined with high holder profits has often preceded strong rallies in the crypto market.
Momentum Pauses, but Fundamentals Remain Strong
Despite the bullish backdrop, LINK has recently consolidated near $23.58, following a strong rally in early August. Technical indicators are mixed: the token has dipped below the 9-day and 21-day moving averages, the RSI is neutral at 52, and the MACD shows bearish tendencies. Sellers have gained slight ground, but the consolidation above $23 demonstrates resilience.
This pause is typical in healthy uptrends. Supply remains scarce, and the majority of holders are profitable, meaning selling pressure is limited. If market demand picks up, LINK could see a sharp move higher, especially given the limited liquidity on exchanges.
Also Read: Chainlink 8 Years: LINK Adoption & PepeNode Presale Surge
Looking Ahead: Catalysts for Potential Upside
Chainlink’s outlook depends largely on broader market sentiment. A renewed appetite for altcoins could channel capital back into LINK, magnifying gains due to tight supply conditions. The combination of high profitability, low exchange reserves, and technical consolidation suggests that the token is primed for a potential surge, making it one to watch closely for traders and investors alike.
Chainlink stands at a critical juncture. Nearly 90% of holders are in profit, and exchange reserves are historically low, reducing selling pressure and limiting liquidity. While short-term momentum has cooled, the fundamentals point to a setup that could support a significant rally if market conditions align.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
