Chainlink (LINK) is poised for a significant shift. Almost 90% of its circulating supply is currently profitable, with reserves on exchanges dropping to multi-year lows. This could lead to a supply crunch that may push prices higher.
As of now, 87.5% of LINK’s circulating supply is in profit, according to Glassnode data. The increase in profitability has coincided with LINK’s price surge from under $15 to above $25. Many holders are enjoying solid gains, which reduces their desire to sell at this level.
If new demand enters the market while selling pressure remains low, LINK could see impressive growth. Experts suggest that this scenario could trigger a price squeeze, benefiting those holding the token.
Recent data shows that the decline in exchange reserves may be linked to broader trends in crypto investments. With more people holding onto their assets, the market dynamics could shift. This situation reflects a growing trend in cryptocurrencies where long-term holding is on the rise. Historical patterns in the market reveal that during such times, prices can climb quickly once demand outpaces supply.
Social media buzz around LINK has been positive. Influencers and traders are actively discussing its potential, contributing to growing interest. As conversations heat up online, it creates more visibility and could attract new investors.
With all these factors in play, LINK is in a compelling position for potential growth. The current climate encourages many to keep an eye on their investments, assessing how market dynamics may shift in the coming weeks.
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