Aaryamann Shrivastava
FXStreet
- Tezos price shot up by more than 9% over the last few days, bringing the altcoin to $1.44.
- Despite the week-long green candles, XTZ is not indicating excessive volatility, which is a good sign.
- If XTZ does not reclaim $1.6, its growth might get stumped, keeping the altcoin closer to recent lows of $1.24.
Tezos price formed a bearish pattern over the last couple of months and continues to follow. This pattern is not good for the investors as XTZ’s price will remain confined within the current resistance and support levels. However, should it breach this resistance, the altcoin will be invalidating a six-month-long downtrend line.
Tezos price takes a hike
Tezos price went up by 9.38% in the span of seven days, resulting in the altcoin trading at $1.44. Most of the other cryptocurrencies, such as Dogecoin, Ethereum, etc., noted rallies worth more than 15%. Thus, this relatively lower growth might not be able to help Tezos achieve its next critical target.
Currently testing a downtrend line as resistance, XTZ has been stuck under for about six months now. Before the crash of May, this trendline acted as support for the altcoin since September 2021, however, in the last few months, every attempt at breaching it has failed.
XTZ/USD 1-day chart
Going forward, the chances of breaking above this line seem bleak since Tezos is not observing any major bullish signal. The Bollinger Bands, at the moment, are converging, which means Tezos is not experiencing severe volatility. This will keep price swings under control, which usually is a positive sign but it could also restrict XTZ from observing an upswing.
XTZ/USD 1-day chart
Additionally, despite the recent 9% rise, Tezos price was unable to turn the 50-day (red) and the 100-day (blue) Simple Moving Averages (SMA) into supports.
XTZ’s support system
The $1.24 mark, mid-October swing low, acts as the next crucial support level for the altcoin, which was last tested back in June.
XTZ/USD 1-day chart
The recent bullishness observed in the crypto market when the total market capitalization almost hit $1 trillion could prevent excessive drawdown in the case of Tezos. But when it comes to a price rise, XTZ might have to wait for a while longer.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.