This Cryptocurrency Price Surge Mimics the Rise in Tesla – What’s Next?


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This Cryptocurrency Price Surge Mimics the Rise in Tesla – What’s Next?

LINK token records an ATH high today as the price surges to $8.5. Coincidently, the rise is identical to Tesla Inc. since the COVID-19 crash. While the rise in Tesla Inc. is 250% since March, the rise in LINK is 205%. The similarity in the rise since the beginning of July has been particularly striking.

While Tesla Inc. has is backed by tech bulls, the bullish momentum in the altcoin seems to have been brought about by ‘price discovery phase’ and surging volume. It’s price broke above the resistance below $5 entering the FOMO phase according to an analyst for Zerohedge. The bullish flag past $6 realized into massive gains of 20% in the following day.

linkusd price discovery
LINK/USD 1-Day Chart on Kraken (Tradingview)

Nevertheless, while numerous forged partnerships are acting as bullish catalysts, leading analyst like Ryan Selkis are still apprehensive of the fundamentals behind LINK’s rise. He tweeted,

ChainLink is proof that no one knows what they’re talking about and crypto “fundamentals” is basically macro sentiment, alchemy, and animal spirits.

Chainlink formed valuable partnerships this year beginning with its price oracle integration on Coinbase and decentralized exchanges. It also integrated with China’s national blockchain network, BSN, and crypto exchange, Huobi. Crypto trader and analyst, Josh Rager, who is still bullish tweeted,

Oh, so you like the $TSLA pump

Just wait until you see $LINK and $XTZ over the next 6 months

Why Must Tezos Follow?

The crypto markets represent a tendency of money inflow in altcoins, often with a definitive close trend.

Social media sentiments and price action of Tezos [XTZ] and Chainlink [LINK] strongly highlight this trend. The correlation coefficient of the Tezos with LINK is currently at 0.9 (high), while with Bitcoin [BTC] it is 0.69.

xtz and tezos
Tezos [XTZ] and Chainlink [LINK] Coefficient, XTZ and BTC Co-eff. (TradingView
Trader and analyst, Immortal Technique (alias) market the similarities in the two charts here,

chainlink tezos price analysis
Chainlink [LINK] and Tezos Price Analysis (Source)
The price action of the two altcoins also represents a similar trend. Nevertheless, traders would still be looking for the confirmation of the breakout and consolidation above the resistance around 0.00033-0.00035 BTC.

Which asset would you trust more for gains: crypto or equities? Please share your views with us. 

Author: Nivesh Rustgi
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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Nivesh Rustgi 1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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