fxs_header_sponsor_anchor

This Tezos fakeout could trigger a 30% rally for XTZ price

  • Tezos price has recovered inside the ascending triangle, hinting at a 29% upswing.
  • Investors need to note that the breakout above $1.67 has not occurred yet.
  • A four-hour candlestick close below $1.33 could trigger a 29% crash to $1.07.

Tezos price consolidates between a horizontal high-time-frame resistance barrier and an inclining support level, forming a bullish pattern. The recent fakeout lured many investors to short, but the recovery suggests that XTZ is vying for a bullish move.

Tezos price reveals its intention

Tezos price flipped the $1.67 support level into a resistance barrier as it crashed 33% between June 12 and June 18. This move was followed by a set of higher lows and equal highs, which when connected using trend lines result in an ascending triangle.

This technical formation forecasts a 29% upswing to $2.16, determined by adding the distance between the first swing high and swing low to the breakout point at $1.66. Interestingly, XTZ price moved below the lower trend line on July 12, indicating a bearish breakout.

However, this move was a fakeout, which is a classic formation that lures unbeknownst traders. Regardless, the recovery has pushed Tezos price up by 8% and above the 200 four-hour Simple Moving Average (SMA), further confirming the trend’s strength.

Going forward, investors can expect a four-hour candlestick close above the $1.66 hurdle, suggesting a breakout and the start of the larger move to $2.16.

XTZ/USDT 1-day chart

On the other hand, if Tezos price flips the $1.33 support level into a resistance barrier, it will invalidate the bearish thesis. In such a case, XTZ price could trigger an 18% correction to $1.07.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.