Tezos, a close contender for the top ten cryptocurrencies by market cap, has seen a strong rally of over 45% over the past 11 days. These incredible month-to-date gains are nothing compared to the returns on the asset over the past two years. And if a trend measurement indicator accurately predicts future price movement in the altcoin, then the gains in August are just the beginning.
Tezo's one-month ROI for August hits 45%, up from 200% year-to-date
Altcoins are exploding across the crypto market, bringing significant profits to investors. Historically, Tezos has been closely correlated with Chainlink, causing the two assets to pool hand in hand. However, a new crypto token that competes with Chainlink, Band Protocol, has taken on the correlation with the decentralized oracle project.
Almost every other altcoin had its day in the spotlight, but Tezos continued to sleep. Recently the sleeping giant was awakened resulting in a 45% bull run for the past ten days.
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The altcoin rose from just over $ 3 to as high as $ 4.30 per XTZ token before being withdrawn. Months ago, Chainlink was trading at a similar level but went into pricing mode after breaking up and is now trading well over USD 10 per LINK token.
According to an indicator for measuring trend strength, Tezos could now follow in Chainlink's footsteps and pay ten dollars per token.
XTZUSD Monthly - ROI Compared | Source: TradingView
Average Directional Index Indicator suggests momentum is favorable for the bulls
Tezos is one of the few unclouded altcoins out there that were born after the crypto bubble burst in the middle of a bear market. While other altcoins fought hard against negative sentiment and deep drawdowns, Tezos and select others had only positive impulses.
Since the asset's low in 2019, it's up over 1000% against the USD trading pair. Tezos has grown over 200% since the beginning of 2020. And in the last month alone it has risen 45% and is climbing.
According to similar conditions on the Average direction indexThe Tezos rally has only just begun.
XTZUSD 5D Average Directional Index | Source: TradingView
Weeks ago, in early July, Tezos had a bullish crossover in the Directional Movement Index, which was included in the ADX indicator. However, the ADX itself is only just getting past 20. 20 is the level at which a trend is viewed as legs and is likely to continue.
The higher the reading, the stronger the trend, but the closer the trend is. However, a value of 20 and above is extremely bullish, along with a supportive crossover.
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The last time Tezos saw similar conditions for the ADX indicator, it rose another 150% from the time the ADX hit 20 to the peak of the trend. Since the ADX is just 20 years old, there is plenty of room for bulls.