Aaryamann Shrivastava
FXStreet
- Tezos price shot up by more than 9% over the last few days, bringing the altcoin to $1.44.
- Despite the week-long green candles, XTZ is not indicating excessive volatility, which is a good sign.
- If XTZ does not reclaim $1.6, its growth might get stumped, keeping the altcoin closer to recent lows of $1.24.
Tezos price formed a bearish pattern over the last couple of months and continues to follow. This pattern is not good for the investors as XTZ’s price will remain confined within the current resistance and support levels. However, should it breach this resistance, the altcoin will be invalidating a six-month-long downtrend line.
Tezos price takes a hike
Tezos price went up by 9.38% in the span of seven days, resulting in the altcoin trading at $1.44. Most of the other cryptocurrencies, such as Dogecoin, Ethereum, etc., noted rallies worth more than 15%. Thus, this relatively lower growth might not be able to help Tezos achieve its next critical target.
Currently testing a downtrend line as resistance, XTZ has been stuck under for about six months now. Before the crash of May, this trendline acted as support for the altcoin since September 2021, however, in the last few months, every attempt at breaching it has failed.
XTZ/USD 1-day chart
Going forward, the chances of breaking above this line seem bleak since Tezos is not observing any major bullish signal. The Bollinger Bands, at the moment, are converging, which means Tezos is not experiencing severe volatility. This will keep price swings under control, which usually is a positive sign but it could also restrict XTZ from observing an upswing.
XTZ/USD 1-day chart
Additionally, despite the recent 9% rise, Tezos price was unable to turn the 50-day (red) and the 100-day (blue) Simple Moving Averages (SMA) into supports.
XTZ’s support system
The $1.24 mark, mid-October swing low, acts as the next crucial support level for the altcoin, which was last tested back in June.
XTZ/USD 1-day chart
The recent bullishness observed in the crypto market when the total market capitalization almost hit $1 trillion could prevent excessive drawdown in the case of Tezos. But when it comes to a price rise, XTZ might have to wait for a while longer.
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