Tezos Price Forecast: XTZ rally nearly out of fuel as some rough terrain lies ahead


  • Tezos price is digesting the firm rejection it received during its rally.
  • XTZ is being pushed higher as the time window toward the US Fed meeting of February closes rapidly.
  • Expect a near 17% gain though the rally is set to stall soon.

Tezos (XTZ) price is seeing bulls hurrying up to cash in those last big profits as this rally is starting to flash warning signs. While global markets are getting unchained from what the US dollar is Doing, equity markets are rallying, with the S&P 500 breaking a crucial trend line that was the guide for the downtrend. With equities freed up now for more upside potential, cryptocurrencies are along for the ride, as the dislocation question between the markets and the central bank will soon get its answers from the US Federal Reserve as the first big central bank to make its appearance this year.

Tezos price sees time flying by as rally on its last legs

Tezos price has made a staggering technical bounce since Wednesday, January, 18, with over a 20% gain after hitting the R1 resistance floor at $0.9385. That pure technical break also came with the Relative Strength Index (RSI) dipping out of the overbought region. After receiving a firm rejection against $1.1936, bulls seem to outpace the bears still despite some issues ahead.

XTZ thus still has some upside potential, but bulls are burning through their fuel quite rapidly, which makes it very difficult to stay ahead of the bears. Unfortunately, once they manage to break above $1.1936, some rough terrain will make them sweat, trigger some profit-taking and fade to the downside. The first level that will cause headaches is near $1.30, where the 200-day Simple Moving Average and the monthly R3 pivot are very close. 

It adds to the idea of seeing a small halt and drop at that level as overall an R3 resistance level is often seen as the furthest a price action can go for that time and is often used as a handle for bears to start shorting the price action. The RSI also confirms that idea as it is trading into overbought territory after the brief dip for a cool-down in price action. Expect at a maximum a rally toward $1.40, which will be too demanding of this rally. Once hit, XTZ would see a dive back to $1.30 or $1.19.

XTZ/USD daily chart

XTZ/USD daily chart

Already quite a few elements mentioned above could trigger that cool-down in the rally much earlier. With the RSI again overbought and seeing the rejection the price action received on Saturday, bears could already be entering the fray. That would mean that soon the sentiment will turn, and price action could drop below $1 to test the support from the monthly R1.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Fetch.ai Price Prediction: FET must hold above $1.70 for strength

Fetch.ai Price Prediction: FET must hold above $1.70 for strength

Fetch.ai price has dropped nearly 45% since late March as broader markets started bleeding. FET bulls must defend $1.70 if they want to keep the upward thrust alive, signaling strength on the AI coin. A break and close below $1.59 would mean a lower low, invalidating the bullish reversal thesis.

More Fetch.ai News

OKX executives depart from exchange while its XLayer Chain goes live

OKX executives depart from exchange while its XLayer Chain goes live

Two senior executives at crypto exchange OKX, Tim Byun and Wei Lan, have left the company after years of heading key roles, according to a CoinDesk source. However, the company is making expansion moves through the launch of its own Layer 2 (L2) chain.

More Cryptocurrencies News

Dogwifhat crashes 60%, but here's why you should not buy WIF yet Premium

Dogwifhat crashes 60%, but here's why you should not buy WIF yet

Dogwifhat (WIF) price shows a slowdown in the bearish momentum as it sets up a potential range. This development could lead to a good buying opportunity from a long-term perspective. 

More Dogwifhat News

XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference

XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference

XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court. 

More Ripple News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP