- Tezos price has been down 20% since September.
- The downtrend has been turbulent, suggesting a bullish recoil effect could occur.
- A breach above $1.45 could induce a 27% rally.
Tezos price shows a potential swing trade setup. Key levels have been defined,=
Tezos price has potential
Tezos (XTZ) price has been underwater throughout the fall as the bulls have endured a persistent 20% decline. However, when observing the technicals, subtle cues suggest that the bulls are building up steam for a significant countertrend punch.
XTZ price currently auctions at $1.39. The declining trend has created a wedge-like pattern many Elliot Wave practitioners call an ending diagonal. Towards the bottom of the pattern, large amounts of volume have poured into the market. On October 25, the bulls successfully herded the 8-day exponential and 21-day simple moving averages. The Relative Strength Index has also crossed back into supportive terrain while creating several bullish divergences.
If the technicals are correct, Tezos price could be setting up for a skyrocketing 27% rally toward the September highs at $1.76. A breach above the $1.45 swing high will be the final confirmation and an ideal entry point for sidelined bulls.
If the confirmation signal occurs, the invalidation of the bullish thesis will be a breach below the October 13 swing low at $1.25. On the contrary, A breach of the 1.25 low could induce a seller's frenzy targeting liquidity levels near $1.00 resulting in a 25% decline.
In the following video, our analysts deep dive into the price action of Tezos, analyzing key levels of interest in the market. -FXStreet Team
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.