Chainlink (LINK) Could Be Poised for a Price Squeeze as Exchange Reserves Fall to Multi‑Year Lows

• 87.5% of LINK’s circulating supply is in profit — sell pressure is limited.

• Exchange reserves have fallen to multi‑year lows, tightening available liquidity.

• Daily indicators show short‑term consolidation; a fresh demand surge could accelerate gains.

Meta description: Chainlink price outlook: 87.5% of LINK in profit and exchange reserves at multi‑year lows — learn why this could spark a supply‑driven breakout and what traders should watch next.

By COINOTAG — Published: 2025-09-01 · Updated: 2025-09-01

What is Chainlink’s current supply outlook?

Chainlink price outlook shows tightening supply dynamics: 87.5% of circulating LINK is in profit and exchange reserves have dropped to multi‑year lows. These conditions reduce immediate sell pressure and increase the chance that renewed buying could produce strong upside in the near term.

How are exchange reserves affecting LINK’s price?

Exchange reserves have trended downward since mid‑2023, even as LINK rallied from below $15 to above $25. According to on‑chain analytics (Glassnode), fewer tokens held on exchanges means less available liquidity for quick selling. Trading indicators (TradingView) show short‑term consolidation; if demand resumes, constrained reserves could amplify price moves.

Source: Glassnode (on‑chain metrics), TradingView (price and indicator data).

LINK supply nears peak profitability

At the time of reporting, 87.5% of Chainlink’s circulating supply was in profit, per Glassnode data. The metric climbed sharply since early July, mirroring LINK’s rise from under $15 to above $25. When a large majority of supply sits in profit, holders have less incentive to sell at current prices, which can support further upside if buyers return.

Most holders are sitting comfortably with limited motivation to liquidate positions near current levels. That dynamic makes the market sensitive to new demand and heightens the potential for rapid price appreciation on renewed buying interest.

Source: Glassnode

Exchange reserves hit multi-year low

Exchange reserves for LINK have steadily declined since mid‑2023, falling to multi‑year lows even as prices rose toward $23.7. Lower exchange inventories mean fewer tokens are immediately available for sale, which tends to reduce sell‑side pressure and can magnify the impact of new buying.

Historically, falling exchange reserves have coincided with bullish phases for altcoins, as reduced liquidity often accelerates upward moves when demand increases.

How has LINK traded recently?

LINK traded at $23.58 at press time, consolidating after a strong rally in early August. The daily chart shows price slipping below the 9‑ and 21‑day simple moving averages, indicating short‑term cooling. The RSI at 52.35 signals neutral momentum, while the MACD has crossed into bearish territory, suggesting short‑term momentum has faded.

Source: TradingView

Frequently Asked Questions

How likely is a supply‑driven breakout for LINK?

If buying momentum returns, the low exchange reserves and high profitability among holders increase the probability of a supply‑driven breakout. The exact timing depends on market-wide demand and macro conditions.

What on‑chain metrics should traders watch?

Watch exchange reserves, percent supply in profit, active addresses, and large‑holder flows. Glassnode on‑chain metrics are useful for tracking these indicators as plain text sources for data.

Is current consolidation bearish for LINK?

Consolidation below short‑term moving averages signals cooling momentum but not a confirmed downtrend. With constrained exchange liquidity, consolidation can precede strong directional moves once buyers re‑emerge.

Key Takeaways

• High profitability: 87.5% of circulating LINK is in profit, reducing immediate sell incentive.
• Low exchange liquidity: Multi‑year lows in reserves tighten supply and can amplify price moves.
• Watch for demand spikes: Renewed buying could trigger outsized upside; monitor on‑chain metrics and price momentum.

Conclusion

Chainlink’s current setup—high percent of supply in profit and historically low exchange reserves—creates a market environment prone to supply‑driven rallies if demand returns. Traders should monitor on‑chain metrics and price momentum closely. COINOTAG will continue to track developments and update this analysis as new data emerges.