Chainlink (LINK) price prediction: Exchange reserves have fallen to a multi-year low, and supply tightening may indicate a price pump.

As the exchange reserves of Chainlink (LINK) have fallen to a multi-year low while the price stabilizes above $23, the token is attracting widespread attention from investors. The continuous decrease in on-chain supply indicates that the market is in an accumulation phase, with selling pressure diminishing, which may lay the groundwork for a new round of pump.

The exchange reserves continue to decline, highlighting the market accumulation trend

In recent months, although the LINK price has surpassed $23.7 and continues to rise, its exchange balance has been steadily declining. This divergence between price increase and supply reduction highlights the bullish macro backdrop of the market, with scarcity enhancing buying momentum. Historical cycles indicate that a significant drop in reserves often precedes a sharp price rise, and the current situation seems to be following the same script.

Recently, the price has risen from $20 to $24, reflecting a rebound in market demand for centralized platforms where liquidity is increasingly scarce. As the number of tokens available for immediate sale decreases, upward pressure may intensify if buying interest continues to grow. Traders see this as a signal that long-term holders are locking up their tokens, thereby reducing the likelihood of large-scale sell-offs.

In addition, this cryptocurrency technology is continuously adopted by institutions, which enhances confidence in its role in blockchain infrastructure and further supports the narrative of supply tightening. The growth in demand and the reduction in supply together form the foundation for sustained bullish momentum, keeping this cryptocurrency firmly in the spotlight of both short-term and long-term investors.

Market indicators show stabilization near key support levels

According to the latest market data, the trading price of LINK is $23.48, having fallen by 3.81% in the past 24 hours. Despite the pullback, its market capitalization of $15.92 billion keeps it firmly in the top 15 cryptocurrencies by market cap. The daily trading volume remains above $900 million, further demonstrating the healthy liquidity and active participation in the global market.

The intraday activity shows that the Token fluctuated between 22.6 USD and 24.0 USD, currently in a consolidation phase after a recent pump. This range-bound movement indicates that the market is digesting profit-taking while buyers are defending the support level. The circulating supply of 678 million Tokens remains active, but the dwindling exchange balances highlight that supply is tightening, which may amplify future price fluctuations.

Technical indicators show complex emotions

As of the time of writing, the trading price of LINK is $23.55, a slight fall of 0.04%. The Token has retreated from a recent high of around $27.87, but is still well above the low of around $10.10 in mid-2025.

This significant rise highlights a strong upward trend, although the current price action reflects consolidation in the $23 region. The support level at $19.53 remains a key observation point.

Chaikin Money Flow (CMF) indicator is -0.04, indicating that despite stable prices, there is still a moderate outflow of funds. This suggests that trader sentiment is cautious, with outflows slightly exceeding inflows over the past few trading days. If selling pressure continues, the asset may face resistance in the short term, but the broader demand trend still supports its long-term bullish outlook.

Conclusion

The event described in this article, namely the continuous decline of Chainlink exchange reserves, is creating a unique bullish environment for the Token. Although market sentiment may appear complex in the short term due to profit-taking, the macro narrative of supply tightening and the steadily increasing adoption rate together form a solid foundation for its long-term value. For investors, closely following LINK's performance at key support levels will be crucial in determining whether it can initiate a new round of rise.