Top Highlights
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Declining Exchange Supply: Chainlink’s supply on exchanges has fallen to 161.8 million tokens, marking a significant decline since mid-2023, which often precedes bull runs by reducing market pressure.
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High Profit Levels: Nearly 90% of LINK holders are in profit, a figure that aligns with previous price rallies but poses a risk of sell-offs if investors decide to realize gains.
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Surge in Open Interest: Open Interest for LINK has skyrocketed from $115 million to over $1.2 billion, indicating increased institutional and retail demand as the token strengthens its presence in the DeFi space.
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Robust Price Performance: Despite a negligible daily dip, LINK has seen a remarkable 48% increase over the last month and 118% over the past year, currently trading around $23.
Chainlink (LINK) Faces Supply Crunch: Bullish Breakout Ahead?
Chainlink (LINK) has recently captured attention as its token supply on exchanges continues to decline. The current levels sit at approximately 161.8 million, marking a significant drop since mid-2023, when prices hovered around $6 to $7. As exchanges hold less LINK, market pressure diminishes, potentially setting the stage for a surge in prices.
Moreover, LINK has posted impressive gains, with an increase of over 230% from its earlier trading range. The reduced availability of tokens can catalyze bullish trends, as limited supply often precedes price escalations when buying momentum increases.
Data from Glassnode reveals another encouraging sign: nearly 90% of LINK holders are currently in profit. This percentage mirrors conditions observed during previous rallies, like the one in July. However, investors should remain cautious. If many traders decide to sell their profits at once, it could lead to short-term price dips. Thankfully, LINK has maintained a healthy profit-taking margin thus far.
Additionally, investor interest in LINK shows considerable growth. Open Interest (OI) in derivatives markets has skyrocketed from around $115 million to over $1.2 billion in just one year. This surge illustrates the increasing acceptance of Chainlink among institutional and retail investors alike.
The project’s strategic partnerships with both Web3 and Web2 companies have solidified its role in decentralized finance (DeFi). Currently, LINK trades at approximately $23, reflecting a negligible daily dip amidst a 48% rise in the past month and a remarkable 118% increase over the year.
As the market evolves, Chainlink’s ability to maintain strong liquidity levels and capitalize on growing investor interest positions it well for future growth. The ongoing developments suggest potential bullish momentum, making LINK a key player to watch in the cryptocurrency landscape.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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