Tezos Price Forecast: XTZ gears up for 44% move to new all-time highs

Tezos is primed for another upswing after securing support at $3.7. The need to find support came after XTZ was rejected from the all-time high of $5.65. A technical breakout hints at the price rallying another 44% to new record highs of $6.55.

Tezos breaks out from the bull flag

A bull flag is a technical pattern that is interpreted as bullish. It forms after an asset has appreciated drastically but meets a barrier, cutting short the uptrend. The correction that follows is not very rapid and usually stops midway through the flagpole – following the consolidation, a breakout as long as the pole's length is expected.

In this case, Tezos is trading at $4.92 after a recent breakout from the bull flag. A 44% upswing is anticipated from the breakout point, which might bring XTZ to new record highs around $6.55. The Relative Strength Index (RSI) validates the uptrend by moving toward the overbought region.

XTZ/USD 4-hour chart

Looking at the other side of the picture

The 12-hour Parabolic SAR points are above Tezos price, which is a bearish signal. The parabolas indicate a change in the asset's trend by either staying above the price (bearish) or forming below the price (bullish).

XTZ/USD 4-hour chart

Similarly, a breakout is needed above $5 to sustain the uptrend. Failure to close the day above this level could encourage sellers to increase their positions, shorting XTZ toward the 50 Simple Moving Average (SMA) support at $3.7.