Lorenzo Stroe
Independent Analyst
- Tezos price had a breakout from a descending triangle pattern on the 4-hour chart.
- A key indicator has just presented a strong buy signal giving credence to the bulls.
- A 4-hour candlestick close above $4.5 would confirm a bullish breakout with a target of $5.5.
Tezos price aims for a nice rebound after establishing a local bottom at $4.3. The digital asset had a healthy consolidation period from a high of $5.64 down to $3.83, after a massive 115% rally.
Tezos price can quickly jump to $5.5, supported by technicals
On the 4-hour chart, Tezos established a descending triangle pattern. It seems that Tezos price had a breakout above the key resistance of $4.5 but needs a candlestick close to confirm. The bullish price target is $5.5, a 20% move calculated by using the height of the pattern as a reference point.
XTZ/USD 4-hour chart
This outlook is supported by the TD Sequential indicator which presented a buy signal on the 9-hour chart. Additionally, Tezos price has defended the 26-EMA here several times and there is practically no resistance until the previous high of $5.64.
XTZ/USD 9-hour chart
However, if the breakout is not strong enough and Tezos gets rejected, bulls will need to hold the 26-EMA at $4.4 to avoid a major drop below $4 towards a low of $3.83 established on February 15.
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