- Tezos appears to have secure formidable support, paving the way to ongoing recovery.
- Price action above the 100 SMA would cement the bulls’ influence over the price.
- Trading above the descending parallel channel’s upper edge could see a massive upswing toward $5.
- Resistance at $4 will either sabotage or delay the upswing toward $0.5.
Tezos is embracing a bullish impulse following the correction from the monthly high of $4.64. Declines from the first week of March occurred within the confines of a descending parallel channel, as illustrated on the chart. Support at $3.6 allowed bulls to shift their focus upward. Meanwhile, XTZ is moving closer to a breakout, eying highs beyond $5.
Tezos uptrend must overcome this crucial hurdle
XTZ is trading at $3.95 amid the persistent push by the bulls to hit higher highs. The 100 Simple Moving Average (SMA) on the 4-hour chart caps the immediate upside. Overcoming this hurdle is critical to the bulls because it clears the path for a potential technical breakout.
Note that the Moving Average Convergence Divergence (MACD) validates the strengthening bullish front. A MACD crosse into the positive region will bolster buyers to higher levels. Besides, the MACD line (blue) has settled above the signal line, suggesting that XTZ is in the hands of the bulls.
On the other hand, Tezos is trading in the upper zone of a descending parallel channel. The middle support seems to have been strongly reinforced; thus, the least resistance path is upwards. Simultaneously, a break above the channel’s upper boundary may trigger massive buy orders, which will intensify the tailwind and catalyze the upswing toward $0.5.
XTZ/USD 4-hour chart
The Parabolic SAR has also validated the bullish outlook. The indicator recently moved below the price, adding credence to the uptrend. As long as the Parabolas (dots) stay under the price, Tezos will continue with the breakout.
XTZ/USD 4-hour chart
Looking at the other side of the fence
Despite the improving technical picture based on the above analysis, Tezos is not out of the woods yet based on the 4-hour SuperTrend indicator. This technical indicator has recently flipped bearish by sending a signal to short Tezos. Therefore, there is a bearish cloud hovering above XTZ, likely to hinder the upswing.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.