On April 7, the LINK price broke out from the descending wedge it had been trading in for three weeks prior, and has increased by almost 50% since. During the same day, XTZ also broke out from an ascending wedge but has only increased by 18%.
Full-time cryptocurrency trader @j0hnnyw00 stated that he has a bullish outlook in the medium/long-term for both LINK and XTZ. In addition, he made the claim that the Tezos price always follows that of LINK.
Sponsored$XTZ #Tezos always follows $LINK
Daily & weekly charts both bullish. pic.twitter.com/QvBcODSXRz— Johnny Woo | Never DM you for Money (@j0hnnyw00) April 12, 2020
ChainLink (LINK)
The LINK price had been trading inside a descending wedge over the period of March 13-April 6. Throughout the pattern, the daily RSI generated a considerable bullish divergence. In addition, the price found support at both the 200-day moving average and the 330,000 satoshi support area. Since breaking out on April 7, LINK has created seven successive bullish candlesticks.
As for the future movement, there is resistance and support at 530,000 and 430,000 satoshis, respectively.
However, the short-term chart indicates that this increase might soon be coming to an end.
The price has been trading inside an ascending wedge since April 10, currently being very close to its projected end. In addition, the short-term RSI has generated a bearish divergence, a sign that the price will likely break down and head towards the 430,000 satoshi support area outlined previously.
Sponsored
Tezos (XTZ)
The Tezos price was also trading inside a descending wedge throughout the period from March 13-April 6. The breakout occurred at the same time as LINK, near the end of April 6. So, it is not clear why the statement is made that XTZ follows LINK when they seem to be moving together.
Similar to LINK, the price found support at a long-term moving average (MA). However, it was the 100-day MA instead of the 200-day. This MA coincides with the 25,000 satoshi support area. Unlike LINK, the breakout was not preceded by any bullish divergence.
If the price continues upwards, the next resistance areas are found at 29,500 and 33,500 satoshis.
In the short-term, the XTZ price is trading inside a symmetrical triangle. Since this triangle is considered a continuation pattern and is transpiring after an upward move, a breakout is expected. This is combined with a flip of the 29,500 area as support also hints that the price will continue moving upwards towards the next resistance at 33,500 satoshis.
To conclude, while both LINK and XTZ broke out from descending wedges, the magnitude of the breakout and successive movement has been dissimilar. In addition, there does not seem to be a delayed correlation between the movement of the two.
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