Following an impressive surge, Chainlink is once again capturing attention. With dwindling exchange reserves and increasing investor confidence, the token appears poised for a pivotal phase. Will this momentum drive LINK to new highs, or are we bracing for a sharp reversal?
The cryptocurrency market is preparing for a potential surge in Chainlink (LINK) as circulating supply becomes scarcer and 90% of holders are in profit. Conditions appear ideal for a significant price increase.
According to Glassnode data, 87.5% of Chainlink’s circulating supply is currently in profit. This high profitability coincides with a strong LINK price increase, rising from less than $15 to over $25 since early July. Most investors find themselves in a comfortable position, with little incentive to sell at these levels. A new wave of buying could quickly reverse the trend in Chainlink’s favor.
LINK reserves on exchange platforms have dropped to 161.5 million tokens, an all-time low according to CryptoQuant. This steady decline indicates limited supply available for immediate sale, thus reducing selling pressure on the market. Decreasing exchange reserves are often associated with bullish environments, as restricted supply can amplify price movements when demand resurges.
Currently trading at $23.58, LINK shows signs of consolidation after a marked rise in early August. Although short-term momentum is declining, the price has remained above the $23 threshold. With exchange reserves at their lowest, the context remains favorable for a return of demand and a resumption of the uptrend.
Chainlink is in a strategic position, with holders realizing solid profits and dwindling exchange reserves. A resurgence in demand could quickly translate into a strong appreciation of LINK’s price. Savvy investors would do well to keep a close eye on this cryptocurrency in the coming weeks.
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