|

Tezos Price Prediction: XTZ commences colossal liftoff toward $5

  • Tezos has just broken out of an ascending triangle pattern ahead of a 25% upswing.
  • The MACD indicator supports the bullish narrative as it crosses into the positive territory.
  • If the SuperTrend indicator fails to flip bullish, XTZ will have a hard time recovering to $5.

Tezos has recovered considerably and consistently from the dip on February 21. Initially, the 200 Simple Moving Average (SMA) hindered price movement in conjunction with the seller congestion at $4. However, XTZ has broken above a key technical pattern and is looking toward a massive move heading to $5.

Tezos bulls focus on sustaining the uptrend

Tezos is trading at $3.93 after breaking above two vital levels, the 200 Simple Moving Average (SMA) on the 4-hour chart and the triangle's hypotenuse. Ascending triangles are bullish continuation patterns. They signify periods of consolidation after an asset rises significantly in value.

The triangle has a bullish impulse and results in a breakout above the x-axis. A spike in volume would usually function as confirmation for the breakout. The upswing has a precise target, equal to the distance between the pattern's highest to lowest points.

XTZ/USD 4-hour chart

XTZ/USD 4-hour chart

A comprehensive look at the Moving Average Convergence Divergence (MACD) reinforces the bullish scenario. The MACD follows the trend of an asset and measures its real-time momentum. Traders can use the MACD to foresee entry and exit positions.

As the MACD line (blue) crosses above the signal line, it is recommended to buy in or increase your position. On the other hand, if the MACD line crosses under the signal line, it is advisable to sell or reduce your positions. For now, the indicator is vividly bullish for Tezos. Thus the uptrend to $5 is likely to continue.

Looking at the other side of the fence

The 4-hour SuperTrend indicator is bearish since the freefall on February 21. This indicator usually advises the trader to either short or long the asset. Despite the upswing from the support at $2.8, the SuperTrend indicator sends a bearish signal.

XTZ/USD 4-hour chart

XTZ/USD 4-hour chart

Besides, the immediate resistance at $4 must come down for gains eying higher levels. Otherwise, Tezos will start to crumble under rising overhead pressure. Support at the 200 SMA on the 4-hour chart and the triangle's hypotenuse remains vital to the uptrend. If lost, selling pressure will surge, forcing XTZ back to $2.8.

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

More from John Isige
Share:

Editor's Picks

Cardano Price Forecast: Approaches critical support as correction risks grow
Cardano (ADA) recovers slightly, trading at $0.206 at the time of writing on Friday, inches above the critical support zone after losing more than 6% so far this week. Weakening derivatives data and fading bullish momentum suggest a bearish near-term outlook, with a decisive close below the support zone potentially triggering a deeper correction for ADA.
Crypto Overview: Bitcoin slips below $77,000 – Raydium, Falcon Finance hold gains

Bitcoin price trades below $77,000 on Friday, extending its capitulation from the previous week’s high at $82,300. Broader market consensus points to a higher likelihood that the US Federal Reserve could raise interest rates at the September meeting, as inflation concerns rise amid the war with Iran.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC pullback, ETH stalls, XRP weakens
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) remain under pressure on Friday as the broader cryptocurrency market extends its losses over 4%, 2.5% and 5%, respectively, this week.
Ethereum Price Forecast: ETH holds above $2,400 as PPI data strengthens rate hike expectations
Ethereum (ETH) is down 0.7% on Thursday as the second-largest cryptocurrency looks to recover from earlier pressure following the release of stronger US inflation data. The Producer Price Index (PPI) for final demand rose 0.4% in August, matching market expectations after a revised 0.1% increase in July, according to the US Labor Department.
Bitcoin: Gearing up for a sharp move
Bitcoin (BTC) is trading around $81,000 on Friday, up over 4% so far this week, and awaits a key catalyst that could determine its next directional move. Strong institutional demand is supporting the bullish price action, with spot BTC Exchange Traded Funds (ETFs) on track to record a third straight week of inflows.