A break of this level could skyrocket the Tezos price
- Tezos price has been down 20% since September.
- The downtrend has been turbulent, suggesting a bullish recoil effect could occur.
- A breach above $1.45 could induce a 27% rally.
Tezos price shows a potential swing trade setup. Key levels have been defined,=
Tezos price has potential
Tezos (XTZ) price has been underwater throughout the fall as the bulls have endured a persistent 20% decline. However, when observing the technicals, subtle cues suggest that the bulls are building up steam for a significant countertrend punch.
XTZ price currently auctions at $1.39. The declining trend has created a wedge-like pattern many Elliot Wave practitioners call an ending diagonal. Towards the bottom of the pattern, large amounts of volume have poured into the market. On October 25, the bulls successfully herded the 8-day exponential and 21-day simple moving averages. The Relative Strength Index has also crossed back into supportive terrain while creating several bullish divergences.
If the technicals are correct, Tezos price could be setting up for a skyrocketing 27% rally toward the September highs at $1.76. A breach above the $1.45 swing high will be the final confirmation and an ideal entry point for sidelined bulls.
If the confirmation signal occurs, the invalidation of the bullish thesis will be a breach below the October 13 swing low at $1.25. On the contrary, A breach of the 1.25 low could induce a seller's frenzy targeting liquidity levels near $1.00 resulting in a 25% decline.
In the following video, our analysts deep dive into the price action of Tezos, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
