Wiki makes linking easy and gets much credit for densely linked text. Here we consider how to handle this very density when paragraphs are free to roam.
A paragraph represents an idea. When we cite another page that we expect the reader to follow then we owe that reader a sentence or two of explanation.
A good rule of thumb would be to limit links to one per paragraph. If you feel the need for two, then maybe two paragraphs would be justified.
Tip: you don't need to link just because you know there is a page by that name. If you don't want the reader to go read the page then don't make it link. For example, I can mention Recent Changes and expect that you know what I'm talking about.
Tip: too many inline links gives a paragraph the look typographers call fruit salad. Too much italic or bold in one place makes it hard to read the words themselves. Colored words are even worse. See Fruit Salad
Every link and every paragraph around a link is a gift to our commons. When we jumble links together into one big paragraph we defeat the drag and drop refactoring that gives life to the commons. Write paragraphs that invite reuse.
Every link becomes a tap target in a mobile interface. The one link per paragraph encourages a link spacing that works well on small touch screens.
Tip: Move links to the end of a paragraph. Your reader will find it. This is especially important for links that need a web page of their own. See Link Words