Skip to content

Tezos (XTZ) follows Chainlink to hit a new record, but is $ 6 a realistic level?

August 11, 2020

With Chainlink (LINK) reaching a new all-time high after all, a similar move would be expected in Tezos (XTZ).. This is because these two currencies have grown together in recent years and were one of the few resilient digital tokens, despite the crash of the cryptocurrency market during the reporting period.

Daily performance of the crypto market

Daily performance of the cryptocurrency market. Source: Coin360

Tezos (XTZ) follows Chainlink to hit a new record, but is $ 6 a realistic level?Tezos (XTZ) follows Chainlink to hit a new record, but is $ 6 a realistic level?

Tezos (XTZ) showed strength as it rose from $ 2.95 to $ 4.50 in the past four daysresulting in a recovery of more than 50%. But is an even bigger rally in the works for Tezos? Let’s check the charts.

Tezos breaks significant resistance at $ 3.25, rising to $ 4.45

As the graphic shows The price of Tezos broke the resistance zone at $ 3.25 and showed impressive strength. The price for XTZ rose from $ 3.25 to $ 4.50 within a few days.

XTZ / USDT 1-day chart

XTZ / USDT daily chart. Source: TradingView

When a cryptocurrency is under price, the easiest way to determine the target zones is through the Fibonacci expansion indicator. In retail, you need to measure these goals Set the Fibonacci values ​​of 1.618 and 2.618.

A similar thing happened on the Tezos chart when the price broke above $ 3.25 and rose towards the Fibonacci level of 1.618, after which it immediately moved to the next resistance zone at the Fibonacci level of 2.618. Then eThe price of Tezos has been reversed, largely due to the withdrawal of Bitcoin (BTC).

The most important levels of support that can be seen at XTZ

The 4-hour diagram clearly shows some areas of support that must be observed. As is well known Buying green candles does not guarantee additional income. This strategy is very aggressive and emotional during trading.

As measured in the graph, Entering a trade through defined support zones is clearly a better approach.

XTZ / USDT 4 hour chart

4-hour chart of the XTZ / USDT pair. Source: TradingView

For example, The 4 hour chart shows some critical support areas. Of course, the previous resistance at $ 3.25 is an obvious support area and primarily the best area to buy.

However, since there is such a volatile movement, These areas are unlikely to be affected. In the bull markets, the best support / resistance changes are generally not reachedas investors and traders surpass these levels.

As the graph shows, lThe next option to seek support is in the $ 3.60-3.75 rangewhich is widely expected to provide assistance in the shortest possible time. From here the price can be consolidated in a row before a new expansion is made.

XTZ / BTC pair breaks above the moving averages of 100 and 200 days

XTZ / BTC 1-day chart

Daily chart of the XTZ / BTC pair. Source: TradingView

The XTZ / BTC pair shows a clear structure limited by range, by which The Tezos price rose again above the 100 and 200 day moving averages (MA)..

Essentially, the resistance zone at 0.0003700-0.0003800 sats was tested multiple times in the previous year. A new test should make a positive leap.

The critical level of support that needs to be maintained is defined in the green box. This area converges with a horizontal support level along with the 100 and 200 day MAs that served as support.

As long as these MAs persist, additional upward momentum is expected as the markets will remain in the uptrend.

XTZ price targets

The Fibonacci extension tool can be used to define multiple price targets for the XTZ.

XTZ / USDT 1-day chart

XTZ / USDT daily chart. Source: TradingView

The largest swing targets are $ 6. However, the table also shows a target at the $ 5 level.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.

Receive Breaking News !

Install
×
Enable Notifications    Ok No thanks