The Altcoins took the lead as there were massive surges in all areas. Some have moved 1,000% or more, such as Aave (LEND) and Zilliqa (ZIL), for example. Others are slowly rising from the ashes, and some are reaching new heights

One of these recent historic highs is that of Chainlink (LINK), which for the first time exceeded $5. Once Chainlink moves, the Tezos (XTZ) follow. Will it be the same this time?

Daily performance of the cryptography market. Source: Coin360

Chainlink surpasses resistance and sets a new record

LINK/USDT 1-day chart

LINK/USDT card 1 day. Source: TradingView

As shown in the chart, Chainlink’s price broke the previous high and resistance level with a massive spark plug

Prior to the breakup, there was a support/resistance flip-flop from the $4.60 level, through which confirmation of support was found. This reversal caused the price to continue and immediately rise to $5.70.

The price of Chainlink has shown its strength since the crash in March, as the price has continually reached lower and higher levels. These movements mark a significant upward trend, which has led to the recent price surge.

The new high of $5.70 is a new record for Chainlink, which means that Chainlink is in a new phase of price discovery and that 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

LINK/USDT card for 1 day. Source: TradingView

A goal of $7 is a possible goal for the next Chainlink gathering. In this regard, two different Fibonacci extensions were used. The red one is between the previous peak in February and the trough of the cycle in March

In this regard, the Fibonacci level of 1.618 (the highest) shows a potential target price level of $7.20.

Second, the blue example shows the same measures. The recent high is taken for the upper analysis and the recent low as well. This shows targets of $5.75 (level 1.618) and $7.06 (level 2.618).

The first level has already been reached as a potential target, where consolidation is likely to occur. In other words, discount buying opportunities are potentially at the previous high level, around $4.90.

If the rally continues, these two Fibonacci expansions suggest a new target of between $7 and $7.25.

A chain link breaks a massive resistance in a pair of BTCs

LINK/BTC 1-day chart

LINK/BTC Table 1 day. Source: TradingView

The BTC chain link pair is showing a strong uptrend, which previously rebounded from the resistance level of 0.000525-0.000535. As mentioned earlier, the more a level is tested, the weaker it gets. This weakness has led to a massive sell-off in recent days

The USD chart already shows potential targets for the continuation of the LINK price rally. As this is a price discovery, the new targets may even exceed expectations

For the BTC pair, a possible retracement to the 0.000565 or 0.00545 sats is not unlikely. The best scenario for a possible downward move is the previous high. However, given the strong momentum of LINK, it is expected that this level will be reached by investors. Therefore, keep an eye on the sats levels of 0.000565 and 0.000545.

Will Tezos follow Chainlink?

Given the correlation between the two previous year’s altcoins, the Tezos follow Chainlink and vice versa. So it’s a good idea to keep an eye on the Tezos because this cryptocurrency has a completely different structure than Chainlink.

XTZ/USDT 1-day chart

XTZ/USDT card over 1 day. Source: TradingView

The Tezos chart shows a rebound in support at $2.20. However, the graph shows significant obstacles. The first is the resistance zone at $2.55-2.60. This level must be crossed in order for the rally to continue

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 historical high can be tested for the XTZ/USD. The main support for the price of Tezos is $2.15-2.25, which will likely allow the rally to continue if this level holds.

The Tezos’ Bitcoin Pair is flashing

XTZ/BTC 1-day chart

XTZ/BTC graph over 1 day. Source: TradingView

The BTC Tezos pair has a top-down structure as it attempts to shift previous resistance into support. The blue rectangle shows a structure that is remarkably similar to its recent movements

The support level at 0.0002450-0.0002475 sats was used as support. This is also the last peak in the cycle, as the price reached this level in December 2019.

A rally to 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 this holds, the price of tezos can reach a new higher floor and will be ready to continue its rally towards 0.0003000 sats. If the next resistance at 0.0003000 sats breaks, a continuation to new highs is likely.

Sentiment changes in the cryptocurrency market

Overall, the sentiment and dynamism of the cryptocurrency market has changed recently, particularly for altcoins, which have shown great strength. Expectations for chain links and tezos have increased, especially over the last 12 months

Tezos and Chainlink were the best performers in 2019 while the majority of the market was still in a down cycle. It is therefore more than expected that these two cryptos will perform well in the next bull cycle

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You must do your own research when making a decision.

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2020-07-07