On the 4th of December, the crypto market experienced one of its worst drops. Almost all of the coins lost 20 percent to 30 percent of their value on that day. While the majority of them have remained in their slow state, a handful have managed to recover.
Chainlink is one among the few coins that has three consecutive green candles. Indeed, at the time of writing, this alt had generated double-digit profits [about 11 percent] for investors over the previous day. BTC, ADA, and SOL, on the other hand, had lost 4 percent to 5% of their daily worth.
Time to stride higher?
Well, the initial leg of any rally post a downtrend is always associated with a sense of gloominess and un-surety. Market participants often find it a task to find the right time to enter the market.
So, what can Chainlink participants do at this stage? The pertinent question remains- Is it the right time to hop onto the bus, or, should they wait before proceeding further? Well, looking into the state of a few of Chainlink metrics would help us decipher what the ideal next move could be.
The average HODLer balance peaked in the second week of November and reflected a value of more than $56k at the time. However, over the past few weeks, the same has massively shrunken, depicting a mere value of $30, at the time of writing.
Now, the aforementioned numbers, to a fair extent, indicate the halted state of the macro-accumulation trend. The downslide in the balance evidently points out that market participants did part ways with their HODLings when Chainlink price made a local peak earlier in November.
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Their selling action, in effect, gave rise to the balance on exchanges. In the initial few days of December, the exchange net flows largely remained negative. Thus, implying the presence of a buying bias. However, the same is currently positive, implying the sell-side pressure.
In fact, ITB’s trades per side indicator also highlighted that the number of tokens sold over the past 12 hours had exceeded the number bought by over 300k tokens.
Nevertheless, over the months, the number of participants who cling to the token for more than a year has increased. However, the short-term participants have gradually been exiting the market.
What this means is that people do have faith in the long-term future of the token. Going forward, if traders enter into the market, then, it’d be fair to expect a full-force swing in LINK’s price. Post that, even if they exit, the momentum would be carried forward by HODLers.
As a result, as long as sell-side pressure exists in the market, the chances of LINK losing rather than gaining value are higher. As a result, LINK will only be able to fully develop an uptrend after the situation of the aforementioned parameters improves. In effect, investors might postpone their entry into the market for a while longer.
Source: ambcrypto.com
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