Tezos' Technicals Turn Bullish, XTZ Climbs Out of 60% Rut
Tezos is flashing a number of buy signals that may allow it to recover lost ground.
Key Takeaways
- Tezos has endured a three-month-long corrective period that saw its price plummet nearly 60%.
- Despite the significant losses incurred, it appears that XTZ is on its way to greener pastures.
- A spike in buying pressure around the current price levels may see prices rise to $2.3 or $2.7.
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While investors struggle to make heads or tails of the U.S. Presidential elections, Tezos is quietly printing bullish tape.
Tezos Bulls Appears Ready to Rebound
Tezos has been one of the main victims of the crypto market’s recent bloodbath.
The smart contracts token saw its price plunge nearly 60% over the past three months, dropping from an all-time high of $4.5 to hit a low of $1.8 recently.
Despite the massive losses, however, it appears that the token is on its way to greener pastures.
The TD Sequential indicator presented a buy signal in the form of a green nine candlestick on XTZ’s daily chart. The bullish formation forecasts that an increase in buying pressure may lead to a one-to-four daily candlesticks surge or the beginning of a new upward countdown.
Moreover, a bullish divergence developed within the same time frame between Tezos’ price and the Relative Strength Index. This technical pattern was created as prices began making a series of lower lows while the RSI made higher lows.
Such market behavior indicates that this token’s three-month downtrend is approaching exhaustion.
By measuring the Fibonacci retracement index from mid-March’s low of $0.93 to the recent all-time high of $4.5, multiple targets can be defined.
Based on this technical indicator, a spike in buy orders around the current price levels could push Tezos to $2.3. But if the buying pressure is strong enough, prices may advance towards the next critical area of resistance, around $2.7.
Though indicators suggest that Tezos is ready to rebound, the 23.6% Fib must hold to validate the bullish outlook.
Failing to do so will likely lead to continued losses as there are few significant support barriers underneath the $1.8 hurdle. Indeed, the next areas of interest sit at $1.5 and $1.
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