Chainlink (LINK) has nearly 90% circulating supply profit! Exchange reserves hit a multi-year low, is a pump on the way?

Chainlink (LINK) has recently become the focus of the market, as the latest on-chain data shows that nearly 90% of the circulating supply is in a profitable state, while exchange reserves have dropped to a multi-year low. This indicates a significant reduction in dumping pressure, and once demand rebounds, the LINK price may welcome a new round of pumping. However, technical indicators show that the short-term bulls and bears are still range-bound, and investors need to follow key support and demand changes.

Nearly 90% of LINK is in a profitable state

(Source: Glassnode)

According to Glassnode data, approximately 87.5% of the circulating supply of LINK is in profit. Since the beginning of July, the price of LINK has risen from below $15 to above $25, and the proportion of holders in profit has also increased.

This situation indicates that most investors do not have an urgent motive to sell, and the market's selling pressure has clearly weakened. If new buying interest pours in, the limited circulating supply could drive prices to quickly break through key resistance levels.

Exchange reserves hit a new low in years

(Source: CryptoQuant)

CryptoQuant data shows that the exchange holds only about 161.5 million LINK, the lowest level in years. Since mid-2023, even though the price of LINK has risen to around $23.7, the exchange reserves have continued to decline.

This means that the number of tokens available for immediate sale decreases, and if demand increases, the limited market liquidity will amplify price fluctuations. Historically, a decline in exchange reserves often coincides with bullish trends.

Technical Analysis: Short-term consolidation but bulls still have the advantage

(Source: Trading View)

As of now, LINK is quoted at 23.58 USD, in a consolidation phase following a strong rebound in early August. The daily chart shows that the price has fallen below the 9-day and 21-day moving averages, indicating a slowdown in short-term momentum.

RSI is at 52.35, indicating a relatively balanced bullish and bearish force; MACD has turned into the negative territory, suggesting that the bullish momentum has temporarily weakened. However, as long as LINK can hold the support level at 23, combined with a low reserve and high profit margin supply-demand structure, there is still potential for a rebound in the future.

Conclusion

The current on-chain data and market structure for LINK are relatively favorable for bulls: nearly 90% of the circulating supply is in profit, and exchange reserves have hit a multi-year low, indicating limited selling pressure. Once demand rebounds, the price may quickly break through resistance zones. However, short-term technical indicators show a slowdown in momentum, and investors should closely monitor the $23 support level and changes in market demand to assess the next trend.