Tezos shows some immense signs of strength. This happened shortly after Chainlink – another extremely bullish sign – received parabolic impulses that allowed him to hit new all-time highs.
Some analysts are now pointing out striking parallels between the price movement of the two cryptocurrencies, as XTZ is currently in a similar technical formation to the LINK that was formed shortly before its explosive rise.
If this pattern works, the sustained upswing in Tezos could mark the beginning of a much larger move.
A trader expressly points out his ability to break through several daily resistance levels, which he is now trying to support.
If it confirms one of these levels as support and stays above it for a longer period of time, it could be positioned so that it "takes off" again and looks even higher.
Tezos follows Chainlink's path; Start a new rally
At the time of writing, Tezos is trading at over 7% at its current price of $ 3.00. The cryptocurrency rose up to $ 3.15 overnight, but found insurmountable resistance at this price level.
Although the recent highs have declined slightly, it still means a massive increase from the multi-day lows of $ 2.40 set at the end of last week.
The upward trend in cryptocurrency started for the first time when these lows were reached. From then on, it slowly rose until it reached its high timeframe resistance of $ 2.70.
The break above this level has catapulted crypto to its recent highs.
It appears that Tezos is following in Chainlink's footsteps as both cryptocurrencies have seen extremely positive price movements over the course of 2020.
Just last night, Chainlink's momentum again led to a parabolic move, in which the price surpassed resistance across the region of $ 7.00 and continued to rise until it peaked at $ 8.40.
An analyst recently present a diagram shows the striking correlation between Tezos and Chainlink from a technical point of view.
If confirmed, XTZ could trade within a wedge pattern similar to the pattern that triggered the intense LINK surge last night.
"XTZ confirmed the generation change to repeat LINK," said the analyst, pointing to the diagram below.
Image Courtesy of CryptoBirb. Chart via TradingView.
Tezos could see further gains if he is above the newly formed support
Another analyst recently noted that Tezos has now broken through several critical resistance levels and turning these levels into support might be enough to make more gains.
“XTZ: Tezos broke daily resistance levels last day. Now retest a long-term daily level as support and as long as this continues I expect it to pick up speed again, ”he said.
Image Courtesy of Josh Rager. Chart via TradingView.
The coming hours should show the longevity of the recent upswing in Tezos.
Featured image from Shutterstock. Charts from TradingView.