• 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.

TradingView ChartXTZ/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.

TradingView ChartXTZ/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.

TradingView ChartXTZ/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


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP