Chainlink (LINK) is experiencing a significant reduction in its supply on exchanges, reaching a multi-year low, which could signal a bullish trend. According to Glassnode, 87.5% of LINK's circulating supply is currently in profit. This profitability, coupled with a decrease in exchange reserves to 161.5 million tokens as reported by CryptoQuant, suggests a potential supply crunch. The limited availability of LINK on exchanges could lead to a price breakout if demand increases, despite recent short-term bearish momentum. LINK is currently trading at $23.58, with the MACD indicating bearish trends. However, the overall market setup remains favorable for a bullish move if demand resurges.