Since Tezos (XTZ) dropped to a low of $ 0.93 in 2020 on March 12, it has been on fire at 207% and a walk from its all-time high of $ 3.96. The only question for investors is when it will stop.
Daily performance of the cryptocurrency market. Source: Coin360
Typically, these big moves show signs of overstretching when the asset is overbought and the traders eventually decide to take profits. At the moment, Tezos seems to be correcting a little as the price has dropped 5.69% since hitting a monthly high of $ 2.90 in the month. Has the upward trend ended, however, or is a consolidation phase beginning?
Let’s take a closer look at Tezos to see if there are any signs that the current upward trend could continue.
BTC / USDT daily chart. Source: TradingView
Although XTZ has seen a breakout in its BTC and USDT pairs, Altcoin has encountered resistance at Fibonacci retracement levels of 61.8%, as has Bitcoin (BTC) and many other altcoins at the moment.
As you can see on the daily chart, XTZ formed a plier ceiling fence at $ 2.85 before falling below the Fibonacci level of 61.8%. The recent move above $ 2.58 pushed the XTZ price up the channel, but before that, every move above 25% was followed by a new test of the underlying support, so the current pullback could simply be a repeat of the XTZ price action above.
The price is currently supported by the high volume VPVR node at $ 2.72, but a drop below that level would likely lead the price to the upper channel of the upstream channel, where there is support at $ 2.59. Below that, traders will look for a recovery at 50% Fibonacci ($ 2.44). Below the Fibonacci level of 50%, the next support is at $ 2.35. The relative strength index has dropped slightly, but remains above the rising trend line and in the bullish zone.
4 hour BTC / USDT pair table. Source: TradingView
Within 4 hours, traders will find that the MACD has dropped below the signal line and the volume increases that have brought the price to new daily highs have almost disappeared. XTZ is operating below the Bollinger Band moving average, and as mentioned earlier, the VPVR again shows that below USD 2.72 to USD 2.35 there is not much demand, which is slightly below the Fibonacci level of 50%.
The short-term trader should look at the shorter deadlines to see if XTZ can pattern higher lows, and then set a 4-hour close over $ 2.79 and $ 2.85. Alternatively, traders can expect a break of over $ 2.92 as the VPVR shows minimal resistance above this level over the daily and 4 hour period.
The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every step of investment and trading involves risks. You have to do your own research when making a decision.
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