Chainlink LINK Approaches Supply Crunch as 90% of Holders Sit in Profit

Chainlink LINK News - Chainlink's LINK token is showing strong signs of an impending supply squeeze, with 87.5% of the circulating supply currently held at a profit according to Glassnode data. The cryptocurrency has rallied from under $15 to above $25 since early July, creating minimal incentive for holders to sell at current levels. Exchange reserves reinforce this narrative—CryptoQuant data indicates available LINK on trading platforms has dropped to 161.5 million tokens, marking a multi-year low. This reduction in sell-side inventory coincides with LINK's climb toward $23.7, setting up conditions where new demand could trigger accelerated upward momentum. Market dynamics now reflect classic supply shock scenarios: high profitability reduces selling pressure while dwindling exchange liquidity magnifies the impact of new bids. Chainlink's crucial infrastructure role in decentralized oracle networks adds fundamental strength to these technical indicators.