Altcoins have been taking the spotlight as massive surges are seen across the board. Some have been making 1,000% moves or more as Aave (LEND) and Zilliqa (ZIL), for example. Others are slowly waking up out of the ashes, and some are printing new all-time highs.
One of those recent all-time highs is Chainlink (LINK), as Chainlink’s price broke above $5 for the first time ever. Once Chainlink moves, Tezos (XTZ) follows. Will it be the same this time?
Crypto market daily performance. Source: Coin360
Chainlink breaks above resistance and prints a new all-time high
LINK/USDT 1-day chart. Source: TradingView
As the chart is showing, the price of Chainlink broke the previous all-time high and resistance level with a massive candle.
Before the breakout, a support/resistance flip of the $4.60 level occurred, through which confirmation of support was found. This flip caused continuation and an immediate surge of the price towards $5.70.
The price of Chainlink has been showing strength since the crash in March, as the price continuously made higher lows and higher highs. These movements mark a significant uptrend, which led to the recent price jump.
The new high of $5.70 is a new all-time high for Chainlink, which means that Chainlink is in a new price discovery phase and Fibonacci can be a useful tool for assets in price discovery.
The $7 level is a potential target for LINK
LINK/USDT 1-day chart. Source: TradingView
A target of $7 is a possible target for the next rally of Chainlink. In this regard, two different Fibonacci extensions were used. The red one is between the previous high in February and the cycle low in March.
In that regard, the 1.618 Fibonacci level (the most important one) is showing a potential target at the $7.20 price level.
Second, the blue example is showing the same measurements. The recent high is taken for the top analysis and the recent low as well. This is showing targets of $5.75 (1.618 level) and $7.06 (2.618 level).
The first level has already been reached as a potential target, where consolidation is likely to occur. In other words, buy-the-dip opportunities are potentially at the previous high around $4.90.
If the rally continues, these two Fibonacci extensions suggest that a new target is somewhere between $7 and $7.25.
Chainlink breaks massive resistance in BTC pair
LINK/BTC 1-day chart. Source: TradingView
The BTC pair of Chainlink is showing a strong uptrend, which previously bounced from the 0.000525-0.000535 resistance level. As we have said previously, the more often a level gets tested, the weaker it becomes. This weakness led to a massive breakout in the past days.
The USD chart is already showing potential targets for the LINK price rally to continue. As it’s in price discovery, the newer targets can even exceed expectations.
For the BTC pair, a potential retrace towards 0.000565 or 0.00545 sats is not unlikely. The best-case scenario for a possible dip opportunity is the previous high. However, given the strong momentum of LINK, it’s expected that this level gets front-run by investors. Therefore, keep an eye on the 0.000565 and 0.000545 sats levels.
Will Tezos follow Chainlink?
Given the correlation between the two altcoins in the previous year, Tezos follows Chainlink and vice versa. Therefore, it’s a good idea to keep an eye on Tezos as this cryptocurrency is showing a completely different structure than Chainlink.
XTZ/USDT 1-day chart. Source: TradingView
The Tezos chart is showing a bounce from support at $2.20. However, the chart is showing some significant hurdles. The first one is the resistance zone at $2.55-2.60. That level needs to break to see a continuation of the rally.
If the price level of $2.55-2.60 is broken, a continuation of $2.90-3.00 is on the table. As the chart shows, this is the last significant resistance before the all-time high can be tested for XTZ/USD. The key support for the price of Tezos is $2.15-2.25, which will likely see the rally continue if this level holds.
Tezos’ Bitcoin pair flashing bottoming signals
XTZ/BTC 1-day chart. Source: TradingView
The BTC pair for Tezos is showing a bottoming structure as it attempts to flip the previous resistance into support. The blue rectangle is showing a structure that’s remarkably similar to its recent moves.
The support level at 0.0002450-0.0002475 sats held as support. This is also the last cycle high as the price topped at that level in December 2019.
A rally towards 0.0002700 sats occurred as this support level remained intact. Now, the previous resistance at 0.0002550-0.0002580 sats is the new support zone. If that holds, the price of Tezos can set a new higher low and will be ready to continue its rally toward 0.0003000 sats. If the next resistance at 0.0003000 sats breaks, a continuation toward new highs is likely.
Cryptocurrency market sentiment shifts
Overall, the sentiment and momentum of the cryptocurrency market have shifted recently, particularly for altcoins, which have been showing significant strength. Expectations for Chainlink and Tezos have been rising, especially in the last 12 months.
Tezos and Chainlink have been the best performers in 2019 while the majority of the market was still in a bear cycle. Therefore, it’s more than expected to see these two cryptos do well in the coming bull cycle.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cryptox. Every investment and trading move involves risk. You should conduct your own research when making a decision.
