- Tezos battles the resistance at $3.5 for an ultimate breakout to the $4.5 all-time high.
- A bullish pennant pattern on the 4-hour chart hints at a potential trend toward $4.5.
- XTZ will turn bearish if the barrier at $3.5 remains unshaken in the near term.
Tezos is up 113% in less than six weeks to trade at $3.39. The bullish momentum has been consistent, in tandem with the bull run in the cryptocurrency market. However, the uptrend stalled on hitting September 2020 resistance at $3.5. XTZ is likely to break out to its all-time highs of around $4.5 if it closes the day or settles above $3.5.
Tezos bullish momentum remains persistent
Despite the stalling under $3.5, Tezos’s uptrend is still intact, especially when the Moving Average Convergence Divergence (MACD) is closely monitored. This indicator tracks the momentum of an asset as well as the trend direction. Traders spotting entry and exit positions can also utilize it.
For instance, when the MACD line (blue) crosses above the signal line, we can expect the price to increase. On the other hand, exploring the levels under the signal line signifies the beginning of a downtrend. For now, the MACD shows that the uptrend is intact, thus the expected uplift to $4.5.
XTZ/USD daily chart
The 4-hour chart shows the formation of a bullish pennant pattern, which signifies a trend continuation. A bullish pennant is formed by a rising flag pole followed by consolidation in a short-term triangle. The consolidation is succeeded by a breakout in the same direction as the previous trend, thus validating Tezos’s possible rally to $4.5.
XTZ/USD 4-hour chart
Looking at the other side of the picture
Despite the bullish outlook, it is important to realize that the upswing to $4.5 may fail to come to fruition mostly if Tezos fails to overcome the selling pressure at $3.5 (September 2020 resistance). The MACD line crosses under the signal line on the daily will also highlight a probable breakdown.
On the downside, support is expected at the 50 Simple Moving Average, currently at $2.7. Other support levels to have in mind are the 100 SMA, holding at $2.4, and the primary buyer congestion at $1.85.
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
Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week.
Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60
Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days.
Solana could cross $200 if these three conditions are met
Solana’s total value locked climbs 18% in July to $5.38 billion, as seen on DeFiLlama. Solana sustains over 20% gains in the past seven days, corrects nearly 3% on Monday. Active addresses and new address count in the Solana network have increased throughout July.
ALT, WLD, ENA, ID set for $200 million token unlocks next week
The crypto market is set to experience another wave of token unlocks next week, with Altlayer (ALT), Worldcoin (WLD), Ethena (ENA), and Space ID (ID) set for a combined token unlock worth about $200 million.
Bitcoin: Will BTC continue its bullish momentum?
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.