Tezos price struggles to recover while technicals suggest it's time to buy
- Tezos price looks ready to rebound as technicals turn bullish.
- A spike in demand for XTZ may see it rise to $2.3 or $2.6.
Tezos plummeted over 60% after reaching an all-time high of $4.5 in mid-August. While the top-19 cryptocurrency continues to face an uphill battle, multiple technical indexes suggest it is on its way to greener pastures.
Tezos price looks ready to recover lost ground
The TD Sequential indicator presented a buy signal on XTZ's daily chart. The bullish formation developed as a red nine candlestick, estimating that a spike in demand for this altcoin may see prices rise for one to four daily candlesticks.
But if the buying pressure is strong enough, the smart contracts token might even start a new upward countdown.
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XTZ/USD 1-day chart
The Relative Strength Index adds credence to the optimistic outlook. Since late September, a bullish divergence between Tezos price and the RSI has been forming within the same time frame.
Bullish divergences usually occur when an asset's price is making a series of lower lows while the RSI is making higher lows. This technical pattern does not provide a precise buying point but highlights that the three-month-long downtrend is approaching exhaustion.
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XTZ/USD 1-day chart
If buy orders begin to pile up around the current support level, Tezos price could have the ability to rebound to $2.3. Moving past this critical area of resistance may push it towards the next important area of interest, around $2.6.
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XTZ/USD 1-day chart
It is worth noting that Tezos price must continue to hold above the $1.8 support level for the bullish outlook to be validated. Failing to do so would be catastrophic for the smart contracts token since it might generate panic selling among investors. Under such circumstances, the odds will drastically increase for a downswing to $1.5.
Author
FXStreet Team
FXStreet
