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Distribution Phase Over: LINK, SEI & SUI Prices Primed for Major Rebound

Distribution Phase Over: LINK, SEI & SUI Prices Primed for Major Rebound

Author:
Coingape
Published:
2025-12-19 13:44:29
6
3

The selling pressure that's been capping rallies is finally lifting. For traders watching Chainlink, Sei, and Sui, the charts are flashing a clear signal: accumulation is back on the menu.

The Setup for a Move

After weeks of sideways action and failed breakouts, key on-chain metrics and volume profiles suggest the distribution phase—where early investors offload tokens to new buyers—has run its course. The supply now sits in stronger hands, setting the stage for the next leg up. It's the classic market cycle playbook, just with more blockchain jargon and fewer neckties.

Why These Three Altcoins?

LINK's oracle networks form the backbone of too much DeFi to stay dormant forever. SEI's parallelized chain is built for the speculative frenzy it hasn't yet seen. And SUI's object-centric model promises scalability that could finally get its moment. Their technical structures are coiling, mirroring the patience—and impatience—of their communities.

The Trading Floor Verdict

This isn't about vague fundamentals or promised partnerships years down the road. This is about price action and momentum. The patterns suggest trapped sellers are exhausted. The next wave of buying won't meet the same overhead resistance. Of course, in crypto, 'mathematical certainty' is just a strong suggestion that can be undone by a single tweet from a billionaire—the ultimate decentralized governance.

Get ready. When these charts break, they tend to move fast. Just remember, the 'rebound' is always obvious in hindsight, right after you've watched it happen from the sidelines.

Altcoins to Buy Now: Raoul Pal Says These Three Chains Stand Out

As the crypto markets enter the weekend, volatility is slowly rising. The Bitcoin price is consolidating above the pivotal support zone after absorbing the short-term sellers, and XRP continues to maintain its stability. After weeks of volatility and forced liquidations, several large-cap altcoins are now trading in zones that historically coincide with late-stage sell pressure, not the start of fresh downtrends. Chainlink (LINK), Sei (SEI), and Sui (SUI) are all flashing similar signals on higher timeframes. 

Momentum Is Compressing, Not Collapsing

Recent volatility has pushed several large-cap altcoins into deeply compressed momentum zones, but the structure does not resemble the start of a fresh breakdown. Instead of accelerating lower, price action is stabilizing as selling pressure fades and longer-term holders step in NEAR key support levels.

altcoin rebounding

Source: X

On the weekly timeframe, all three assets are trading with RSI readings in the low-to-mid 30s:

  • LINK: Weekly RSI near 38
  • SEI: Weekly RSI around 32
  • SUI: Weekly RSI close to 34

Historically, these momentum levels tend to appear after prolonged selling, when downside acceleration slows, and marginal sellers are largely exhausted. Importantly, RSI is not signalling strong bullish momentum yet—but it is showing that there is little left to sell aggressively at current levels.

This distinction matters. Bear markets usually begin with momentum expanding lower, not compressing near long-term support.

Supply Is Absorbing—Why This Matters Going Forward

Price action across LINK, SEI, and sui shows a clear shift from distribution to stabilisation. Despite recent volatility, none of these assets has broken decisively below their higher-timeframe support zones. Pullbacks attract steady demand, suggesting the long-term holders will absorb the remaining supply, rather than panic sellers.

This behaviour is inconsistent with the early stages of a bear market, where support typically gives way under sustained pressure. Instead, fading sell intensity points to a base forming, improving the odds of recovery attempts over further aggressive downside. While 2026 outcomes will still depend on macro conditions and leadership from Bitcoin and Ethereum, the current structure favours consolidation and upside exploration rather than continued distribution.

The Bottom Line!

The current signals across LINK, SEI, and SUI point less toward an exhausting trend and more toward distribution. With momentum compressed, key supports holding, and sell pressure fading, the probability favors stabilization and recovery. A gradual grind higher or range expansion appears more likely than a sharp breakout, as markets remain sensitive to macro cues and Bitcoin’s direction.

Looking into early 2026, outcomes will be shaped by liquidity conditions and broader risk appetite. If macro stability improves and bitcoin holds structure, these large-cap altcoins are positioned to recover meaningfully from current levels, even if a full return to all-time highs remains a longer-term process rather than an immediate outcome.

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