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# 3 Reasons Why DeFi Token Chainlink (LINK) Surged 42% in Five Days

Bids for popular decentralized finance token Chainlink (LINK) increased in the five-day period ending Monday.

The Chainlink’s governance token added \$3.42, or 42 percent, to establish a month-to-date high at \$11.90 in the said interval. Its gains followed a steep downside correction of more than 60 percent from its record high at \$20.53 – and a mildly-stretched consolidation move.

`LINK/USD is showing signs of a healthy rebound. Source: LINKUSD on CoinPriceWatch.com`

LINK formed a local bottom at \$7.28 on September 23. The level prompted bulls to purchase the token at what appeared to be its discounted rates. As accumulation bypassed capitulation, the price jumped higher, only to hit a stubborn resistance wall in the \$10.80-11.16 range.

On Monday, LINK broke above the said price ceiling. The DeFi token is now looking to extend its rebound further as the market conditions approve on a whole. Here are the three reasons why LINK exploded by 42 percent since October 7 and why it could continue its uptrend.

Contents

## #1 Balancing the Sell-Off Act

The period of LINK’s prolonged downside correction from \$20-valuation coincided with a series of its massive sell-offs.

A “dev address” associated with the Chainlink team sold 500,000 LINK repeatedly. The frequency at which the whale dumped the tokens increased especially after it hit a record high. The proceeds went to a Binance wallet, but then the trail went cold.

`Mysterious Dev Wallet keeps selling pressure high on LINK. Source: Etherscan`

The last time the anonymous whale sold 500K LINK was on Sunday. That, nevertheless, failed to derail the token’s upside bias. It showed an increased accumulation among traders, leaving hints that they would keep buying LINK at local tops.

And the reason for their renewed bullish momentum lies with increased adoption.

## #2 New Listings Announced

Several mainstream exchanges onboarded LINK pairs on their platforms in the last 48 hours. It started with crypto derivative exchange, BitMEX, that introduced LINK-USDT Quanto perpetual swap contracts.

The Seychelles firm stated that they would offer 50x leverage on the said contract upon its launch on October 16.

“Like other quanto contracts, the LINKUSDT product will have a fixed Bitcoin multiplier regardless of the Tether/Chainlink price,” BitMEX explained. “This allows traders to long or short the LINK/USDT exchange rate without ever touching either LINK or USDT.”

Earlier this Tuesday, European crypto exchange BitStamp also revealed its plans to list LINK pairs on its platform. The announcement followed a similar LINK listing on US-based OKEx exchange.