The September 7th flash crash forced most of the coins in the market to leave their respective ascending channels on the chart. While some Layer 1 altcoins like Fantom and Avalanche have rallied quickly, most of the remaining cryptocurrencies, including Chainlink (LINK), appear to be struggling.
Although LINK has tried very hard to get back on the channel, the price has only moved horizontally for the past five days. Periods of consolidation are often accompanied by tribulation. However, such periods offer many opportunities for re-entry.
Time to collect LINK?
Until the end of July, average balance of a HODLer LINK around the $ 25,000 mark. That number has grown steadily over the months, hitting the $ 46.1,000 mark at the time of writing. In general, this means that as the price falls, market participants have accumulated more LINK.
In addition, the outflow index has continuously narrowed, which shows the buying mood among market participants. As of September 7, the total balance on all exchanges was 4.2 million tokens, but at the time of writing there were only 966k tokens left.
In addition, the LINK market has seen a new wave of long-term HODLs in the past few months as speculators are slowly leaving the market. This underscores the fact that market participants believe in the long-term future of the token. In addition, short-term HODLers have stayed away from the LINK market due to the inconspicuous price volatility.
In addition, the number of trades is hovering at its lowest level yet, which further exacerbates the accumulation trend, as shown in the graph below.
Those who have missed it so far still have the chance to enter the LINK market. The market is clearly in an accumulation phase, which will soon be followed by an expansion phase. In addition, LINK has been able to gain a lot of momentum since the beginning of this year, mainly due to the hype surrounding the smart contract.
The Chainlink network provides users with efficient ways to deploy and execute smart contracts. In addition, its price feed has evolved into an oracle solution for pricing. Over time, as the use cases became more sophisticated, an increase in the price of LINK was evident.
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According to Ambcrypto