Tezos is beginning to show some immense signs of strength. This comes shortly after Chainlink – another extremely bullish token – incurred parabolic momentum that allowed it to set fresh all-time highs.
Some analysts are now pointing to striking parallels between the two cryptocurrency’s price action, as XTZ is currently caught within a similar technical formation to the one LINK formed just before its explosive surge.
If this pattern plays out Tezos’ ongoing upswing could mark the start of a much larger movement.
One trader is specifically pointing towards its ability to break through multiple daily resistance levels, which it is now attempting to flip into support.
If it confirms one of these levels as support and holds above it for an extended period of time, it could be positioned to “take off” again and see even further upside.
Tezos Follows in Chainlink’s Path; Kicks Off a Fresh Rally
At the time of writing, Tezos is trading up over 7% at its current price of $3.00. The cryptocurrency rallied as high as $3.15 overnight but found some insurmountable resistance at this price level.
Despite declining slightly from its recent highs, this still marks a massive climb from its multi-day lows of $2.40 that were set late last week.
The cryptocurrency’s uptrend first began when these lows were hit, from which point it slowly pushed higher until it reached its high time frame resistance at $2.70.
The break above this level is what catapulted the crypto up to its recent highs.
It does appear that Tezos is following in Chainlink’s footsteps, as the two cryptocurrencies have both seen tremendously positive price action throughout 2020.
Just last night, Chainlink’s momentum once again resulted in a parabolic movement that sent its price flying past the resistance that was laced throughout the $7.00 region, with it continuing to surge until it reached highs of $8.40.
One analyst recently put forth a chart showing the striking correlation between Tezos and Chainlink from a technical perspective.
If confirmed, XTZ could be trading within a wedge pattern similar to that which helped spark last night’s intense LINK surge.
“XTZ confirmed generational reversal to repeat LINK,” the analyst noted while pointing to the chart seen below.
Image Courtesy of CryptoBirb. Chart via TradingView.
Tezos Could See Further Gains if It Holds Above Newly Formed Support
Another analyst recently noted that Tezos has now broken above multiple crucial resistance levels, and a flip of these levels into support could be enough to fuel further gains.
“XTZ: Tezos broke through daily resistance levels over the past day. Is now retesting a long term daily level as support and as long as this holds I expect it to take off again,” he said.
Image Courtesy of Josh Rager. Chart via TradingView.
The coming hours should reveal the longevity of Tezos’ latest upswing.
Featured image from Shutterstock. Charts from TradingView.