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The flash crash on September 7 forced most market coins to exit their respective ascending price channels on the price charts. While some, such as Fantom and Avalanche, recovered quickly, most others, including Chainlink, appeared to be struggling.
Despite the fact that LINK has been desperately seeking to re-enter the channel, its price has only moved horizontally during the last five days. Consolidation phases are frequently linked with a sense of sadness. However, such times bring with them a plethora of re-entry opportunities.
Time to accumulate LINK?
Towards the end of July, the average balance of a HODLer revolved around the $25k mark. TThe amount has gradually increased over the months and is now explicitly $46.1k at the time of writing. In general, this suggests that market players have been adding more LINK tokens to their portfolios as its price has fallen.
The currency outflow measure provided strong support for the aforementioned story. The same has been steadily diminishing, showing the presence of a buying attitude among market participants. On the 7th, the total balance on all exchanges was essentially 4.2 million tokens. However, at the time of writing, the same was as low as 966k tokens.
Further, over the months, the LINK market witnessed an influx of new long term HODLers while speculators have gradually been exiting the market. This demonstrates that market players believe in the token’s long-term potential. Furthermore, due to the not-so-dramatic price volatility, short-term HODLers have avoided the LINK market.
Furthermore, the number of transfers has recently been circling around the lows, exacerbating the accumulation pattern. The graphic attached below demonstrates this.
Well, people who had missed entering the LINK market earlier, still have time to hop on. The market is evidently in its accumulation phase and would soon be followed by the expansion phase next. Further, LINK has been able to garner a lot of traction since the beginning of this year, primarily due to the smart contract hype.
LINK’s network provides users with effective ways to deploy and execute smart contracts. Additionally, as indicated in an earlier article, its price feeds have started becoming the go-to price oracle solution. With time, when its use cases become even more refined, one can expect LINK’s valuation to spike.