Tezos, a close contender for the top ten cryptocurrencies by market cap, has gone on a powerful, over 45% rally in the last 11 days. These incredible month-to-date gains are nothing compared to the asset’s past two years of returns. And if a trend measuring indicator accurately predicts future price action in the altcoin, August’s gains are just the beginning.
Tezos One-Month ROI For August Reaches 45%, 200% YTD
Altcoins all across the crypto market are exploding and bringing investors substantial gains. In the past, Tezos was tightly correlated with Chainlink, prompting the two assets to rally hand and hand. However, a new crypto token competing with Chainlink, Band Protocol, has taken over in terms of correlation with the decentralized oracle project.
Nearly every other altcoin had its day in the limelight, but Tezos has continued to slumber. Recently, the sleeping giant has been awakened, prompting a 45% bull run over the last ten days or so.
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The altcoin rose from just over $3 to as high as $4.30 per XTZ token before pulling back. Months ago, Chainlink was trading at a similar level, but after breaking upward went into price discovery mode and is now trading well over $10 per LINK token.
According to a trend strength measuring indicator, Tezos may follow in Chainlink’s footsteps toward ten bucks a token, starting right now.
XTZUSD Monthly - ROI Compared | Source: TradingView
Average Directional Index Indicator Suggests Momentum Is In Bulls Favor
Tezos is among the few untarnished altcoins out there, that was born after the crypto bubble burst and amidst a bear market. While other altcoins fought hard against negative sentiment and deep drawdowns, Tezos and select others have had nothing but positive momentum.
From the asset’s low in 2019, it is up over 1000% on the USD trading pair. Since the start of 2020, Tezos has rallied over 200%. And in the last month alone, it is up 45% and climbing.
According to similar conditions on the Average Directional Index, Tezos’ rally has only just started.
XTZUSD 5D Average Directional Index | Source: TradingView
Weeks ago, at the start of July, Tezos had a bullish crossover on the Directional Movement Index included on the ADX indicator. The ADX itself, however, is only just now passing above a reading of 20. 20 is the level at which a trend is considered to have legs and is likely to continue.
The higher the reading goes, the stronger the trend, but the closer the trend is to reversing. But a reading of 20 and above is extremely bullish along with a supporting crossover.
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The last time Tezos saw similar conditions on the ADX indicator, it rose by another 150% from the time the ADX hit 20 until the trend peaked. With the ADX just now passing 20, there’s plenty of room for bulls to run.
This post was originally published on www.newsbtc.com