Tezos breached key support as the price was caught within the downtrend over the past couple of weeks, grinding lower alongside Ethereum and Bitcoin while most other altcoins incurred a parabolic momentum as we are reading further in the Tezos news.
Analysts are now noting that the next cryptocurrency trend will depend on Chainlink entirely as many investors have been treating XTZ as a “slower LINK” from a price perspective. It still remains unclear whether these two assets are truly correlated but the traders are trying to play a correlation that could end up in actually manifesting it. one analyst even noted that where LINK trends next will provide guidance for Tezos.
Another factor to consider is the near-term level where Tezos has just plunged in a key support level as one analyst has been watching for a few days. As Tezos breached key support levels, XTZ could need to see some more upside in the upcoming days and weeks. Tezos is trading up marginally with a price of $3.25 which is around the price at which it has been trading for the past few hours. The cryptocurrency is facing a strong influx of selling pressure which led the price to slide from $3.50 to lows of $3.10.
This movement came along with the decline of Bitcoin which plunged from $11,600 to lows of $11,150. In the same time, XTZ was able to recover by a good majority of the losses and one analyst even noted that the region between $3.10 and $3.20 is strong support which could help XTZ go higher in the near-term:
“XTZ: Very simple, arrived at the area that I initially targeted for longs.”
Because of the loose correlation formed between Chainlink and Tezos in the past few months, one analyst believed that LINK should influence in the near term:
“If LINK runs, XTZ should follow like it usually does. Not a bad spot, right at support. Took a small long here as well.”
Right now, Chainlink is caught in the short-term downtrend with a price that is oscillating between in the lower region of $13.50 and highs of $16.00. These levels are broken first usually, and therefore should provide insights into Tezos’s near-term trend.
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