Chainlink (Link) faces Crunch: Breakout breakout ahead?

The exchange supply levels for the link continue to decrease, after the same movement that began a few years ago.

With gains and open interest to very high levels, will this turn the next rise in the market, or are there more in history?

Exchange dry reserves

According to Cryptoquant’s data at the time of writing, the token supply levels have fallen to 161.8 million, marking a trend of several years that began in mid -2023, when the price was around $ 6 to $ 7.

Despite increasingly lower supply levels, the asset has constantly increased, now more than 230% since the range of more than two years ago.

The lower the availability of the sale, the lower the pressure in the market. In addition, the fall in tokens reserve levels in exchanges generally coincides with bullfights, since limited supply can catalyze price jumps.

If Link sees an increase in the purchase impulse, reduced liquidity could prepare the stage for higher prices.

Gains near Apex levels

The percentage supply of Glassnode in the profit table also seems to support the bullish impulse, with data at the time of the publication that indicate a significant percentage of the profit holders, almost 90%, which coincides with the last recovery of July.

However, this could be a warning signal for link investors. Such high percentages of merchants who feel unrealized could lead to a decrease in prices if they decide to get some money from the table. However, this has not been the case of Link so far, since the asset has maintained a relatively healthy profit margin.

Interest in boom

Open interest (OI), the metric that tracks the total number of active and short positions in derivative markets, has also been shot during the past year.

As of September 1, 2024, there were approximately $ 115 million in OI for the Token, which has now exploded to more than $ 1.2 billion, according to the current Messari data.

This is aligned with the broader institutional and retail acceptance of Chainlink and his native token. The project behind Link has taken advantage of several key associations between web3 and web2, solidifying its place as a key player in Defi, which has helped capture the interest of investors.

The Token of the Oracle service is currently quoted to around $ 23, according to CoinmarketCap data. The insignificant daily immersion, compared to the 48% increase for the last month, and 118% for the year.