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Chainlink Vs. Tezos — Which has Higher Growth Potential?

2 mins
Updated by Kyle Baird
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In Brief

  • On April 7, LINK broke out from an ascending wedge and has increased by 50% since.
  • Similarly, XTZ broke out from its descending wedge on April 7 but has only increased by 20%.
  • Both altcoins have found support at long-term moving averages.
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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.

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.
LINK Wedge Breakout
LINK Chart By Trading View
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.
LINK Short-Term decrease
LINK Chart By Trading View

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.
XTZ Breakout
XTZ Chart By Trading View
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.
XTZ Symmetrical Triangle
XTZ Chart By Trading View
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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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)