With Chainlink setting a new all-time high and entering price discovery mode, all eyes turned to the altcoin called Tezos. In the past Tezos and Chainlink have risen in the same tides. If history repeats and the assets stay closely correlated, further upside could be coming for XTZ holders.
However, a tag team of sell signals on USD and BTC trading pairs could cause the sizzling hot altcoin to correct before another leg up.
Can Tezos Follow Chainlink To a New All-Time High?
Two of the crypto market’s top performers over the last several years, Chainlink and Tezos, have followed a similar path to stardom.
Each altcoin arrived in the crypto market after the bubble burst, and aren’t tarnished by a brutal drawdown like other top cryptocurrencies. Despite similar trajectories, the two assets couldn’t be more different.
Related Reading | Small Cap Altcoins Have Outperformed Bitcoin By 5x in 2020
Tezos can be used to launch security token offerings but has thus far ballooned due to the frenzy surrounding staking. Staking provides holders of the asset with an APY return, for doing nothing more than parking the assets in a wallet.
The resulting increase in ROI has helped Tezos pick up additional steam this year, but it has yet to catch up to Chainlink in terms of performance. But because the two assets have shown such correlation, once Chainlink set a new all-time high, crypto investors turned to XTZ.
A fractal playing out across XTZ price charts very closely reflects the price action in LINK just ahead of the breakout. After the breakout, the asset entered price discovery mode and is searching for its next peak.
Meanwhile, Tezos was expected to do the same, however, a duo of sell signals may stop any further advance in the altcoin.
XTZUSD & XTZBTC TD Sequential 9 Sell Setup | Source: TradingView
TD Sequential Triggers Sell Setups on XTZUSD and XTZBTC
According to the TD Sequential indicator, Tezos just gave two sell setups – one on the BTC pair, and the other on the USD pair.
The TD Sequential indicator is used to time market tops and bottoms and has done so with chilling accuracy throughout the last several years of cryptocurrency.
Several other altcoins have given such signals in recent days, suggesting that the greater altcoin market could see a drop against Bitcoin.
Related Reading | Alt Season: ‘Altcoins’ Search Volume Surges On Google Trends
During the last few weeks, altcoins have been flying against Bitcoin, allowing assets like XRP, Stellar, Chainlink, and Tezos to fly. Crypto investors have been calling it an alt season, but any ongoing altcoin performance is contingent on BTC dominance.
Bitcoin trading sideways has made for the ideal environment for alts to shine, but when the king of crypto does finally move, it could crush alts in its wake.