Chainlink Supply Crunch & Open Interest Surge Fuel Bull Run
Chainlink exchange reserves have plunged to a multi-year low of around 161.8 million LINK, signaling a tightening supply. Over the past two years, LINK’s price has surged over 230%, including a 48% rally in the last month and a 118% gain year-to-date. On-chain data show nearly 90% of LINK holders are in profit, echoing levels seen during July’s rally. Meanwhile, open interest in LINK derivatives has jumped from $115 million to over $1.2 billion this year. Reduced sell-side pressure and constrained liquidity could fuel a sharp price squeeze if demand resurges. Strategic Web2 and Web3 partnerships further boost bullish momentum. Traders should watch Chainlink’s exchange reserves, on-chain metrics, and derivatives open interest for signals of a potential breakout near the $23 mark.
Bullish
Chainlink’s plunging exchange reserves and rising open interest point to a supply squeeze and growing trader demand. With nearly 90% of holders in profit and strategic partnerships boosting confidence, reduced sell-side pressure supports a bullish outlook. In the short term, constrained liquidity could trigger sharp price moves if new demand emerges. Over the long term, sustained on-chain profitability and expanding derivatives activity may underpin further upside, indicating solid market momentum for LINK.