Chainlink Price Breaks Out, Exchange Reserves Remain Flat Near Multi-Year Low

Chainlink's price has broken out of a seven-month trading range between $7 and $10, climbing from near $9 to a high above $15.50 in September. However, exchange reserves have remained flat, sitting at 124.3 million LINK, near a multi-year low and well below the 190 million peak from early 2024. This stands in contrast to previous rallies, where sharp reserve spikes often accompanied price increases. According to analyst R3N, such spikes have typically preceded local tops on the chart.

R3N pointed out that the Chainlink exchange reserves chart shows a repeating sawtooth pattern, with reserves building gradually and then jumping sharply in a single move. This cycle has played out at least six or seven times, with several spikes landing close to local price tops. However, the latest rally did not follow this script, with reserves staying flat between 124 million and 130 million throughout the September to October move.

The analyst is watching for a potential reserve spike as the rally continues, which would suggest less fresh supply arriving at exchanges. Historically, this area has been where the pattern typically shows up, and until a spike appears, reserves remain near their multi-year low.