The cryptocurrency market sank in pain on December 4th. On that day, almost all coins fell from 20% to 30% in value. While the majority is stagnating for the time being, some have recovered.

LINK is one of them who recorded 3 consecutive green candles. Since this morning, the altcoin has been giving investors double-digit returns (approx. 11%) within 24 hours. In contrast, the big guys like BTC, ADA and SOL are down 4-5% on the daily chart.

LINK price table 4 hours | The source: Trade view

Time to go higher?

The initial phase of a rally after a downtrend is always associated with gloom and uncertainty. Participants often need to find the right time to get started.

What can LINK dealers do in this phase? Is it the right time to get on the train or should I wait? A look at the state of several indicators will help decipher LINK’s ideal next step.

The average HODLer balance peaked in the second week of November at more than $ 56,000. In the past few weeks, however, that number has dropped to just $ 30 at the time of writing.

To some extent, the above figures show that the macro-accumulation trend is pausing. The falling balance suggests the owners sold assets when the LINK price peaked locally in early November.

In fact, this act of selling increases the balance on the exchanges. In the first days of December Cash in circulation The net exchange rate was mostly negative, suggesting a buying trend. In the meantime, however, the metric has turned positive, which indicates pressure to sell.

In fact, ITB’s Per Page Transaction Index also shows the number of sales in the last 12 hours that exceeded purchases by more than 300,000 tokens.

Average credit (green) and price (black) | The source: IntoTheBlock

However, over the months, the number of participants who held on to the token for more than 1 year gradually increased. In contrast, the short-term participants leave the market.

That means that people believe in LINK’s long-term future. In the future, when dealers are more actively involved, the price can be expected to change significantly. Thereafter, the momentum will also be maintained when exiting the HODLer.

The source: IntoTheBlock

As long as the pressure on the sell side remains pervasive in the market, the chances that the price of LINK will go down are higher. Unfortunately, LINK can only properly establish an uptrend if the status of the above indicators improves. Therefore, investors can wait a little longer to enter the market.

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