The bullish case for Chainlink as supply hits critical low and 90% holders see profits

Key takeaways

As LINK holders enjoy high profitability and fewer tokens remain on exchanges, conditions are aligning for a potential price squeeze. 

Chainlink [LINK] is getting ready for a major move.

With nearly 90% of its circulating supply sitting in profit and exchange reserves falling to multi-year lows, we’re all set for a potential supply crunch.

If fresh demand enters the market, dwindling sell-side pressure could quickly tip the balance in LINK’s favor.

LINK supply nears peak profitability

At press time, 87.5% of Chainlink’s circulating supply was in profit, according to Glassnode data.

The chart shows a sharp climb in profitability since early July, closely tracking LINK’s rally from under $15 to above $25.

Source: Glassnode

Most holders are sitting comfortably, with reduced incentive to sell at current levels.

If fresh demand accelerates, limited sell-side pressure could cause stronger upside momentum, putting LINK in the position for a breakout.

Exchange reserves hit multi-year low