The three reasons why Chainlink price exploded by 42% since October 7 and why it could continue its uptrend
Chainlink price added $3.42, or 42%, to establish a month-to-date high at $11.9 in the said interval. Its gains followed a steep downside correction of more than 60% from its record high at $20.53 – and a mildly-stretched consolidation move. 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 $10.8 – $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 as 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 could trigger Chainlink price
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 a crypto derivatives 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 the US-based OKEx exchange.
#3 Chainlink partnerships
The price bumps in the LINK market also appeared on Chainlink’s growing presence in the DeFi space. The oracle protocol is making a massive pipeline of future integrations – about 100 projects – and have signed more than 115 partnerships simultaneously.
For instance, LINK’s first signs of rebound came with a 30 percent price pump during the September 24-24 trading session. The uptick shortly followed Travala.com’s announcement of enabling LINK payments on its traveling platform.
Messari researcher Wilson Withiam stated:
“Over 30 projects have fully integrated Chainlink data feeds, most of which went live in July 2020. Among these recent price feed recipients are smart contract platforms Harmony and NEAR, as well as Bancor, which just launched the second version of its AMM protocol.”
With that, Chainlink has become the de facto choice for DeFi platforms and applications that are looking to outsource their oracle needs.
LINK, as usual, is receiving the long-term benefits of Chainlink’s growth as a project.
The ChainLink network has hit a new milestone in terms of cumulative transaction volume
? Cumulative $LINK Transaction Volume just went above $30,000,000,000.
Current value: $30,005,175,590
— glassnode alerts (@glassnodealerts) October 13, 2020
The ChainLink (LINK) network has hit a new milestone in terms of cumulative transaction volume by exceeding $30 Billion. According to on-chain data from Glassnode, the ChianLink network has handled a total of $30,005,175,590 since it was launched in 2017. Below is the tweet by the team at Glassnode highlighting the new milestone on the ChainLink network.
You can see the LINK price here.
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