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 TradingView.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.
#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.