Tezos price struggles to recover while technicals suggest it's time to buy

  • Tezos price looks ready to rebound as technicals turn bullish. 
  • A spike in demand for XTZ may see it rise to $2.3 or $2.6. 

Tezos plummeted over 60% after reaching an all-time high of $4.5 in mid-August. While the top-19 cryptocurrency continues to face an uphill battle, multiple technical indexes suggest it is on its way to greener pastures.

Tezos price looks ready to recover lost ground

The TD Sequential indicator presented a buy signal on XTZ's daily chart. The bullish formation developed as a red nine candlestick, estimating that a spike in demand for this altcoin may see prices rise for one to four daily candlesticks. 

But if the buying pressure is strong enough, the smart contracts token might even start a new upward countdown.

Tezos' price chart in USD

XTZ/USD 1-day chart

The Relative Strength Index adds credence to the optimistic outlook. Since late September, a bullish divergence between Tezos price and the RSI has been forming within the same time frame.

Bullish divergences usually occur when an asset's price is making a series of lower lows while the RSI is making higher lows. This technical pattern does not provide a precise buying point but highlights that the three-month-long downtrend is approaching exhaustion.

Tezos' price in USD

XTZ/USD 1-day chart

If buy orders begin to pile up around the current support level, Tezos price could have the ability to rebound to $2.3. Moving past this critical area of resistance may push it towards the next important area of interest, around $2.6. 

Tezos price in USD

XTZ/USD 1-day chart

It is worth noting that Tezos price must continue to hold above the $1.8 support level for the bullish outlook to be validated. Failing to do so would be catastrophic for the smart contracts token since it might generate panic selling among investors. Under such circumstances, the odds will drastically increase for a downswing to $1.5

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

ADA could retrace in the short-term before massive 20% breakout

Cardano has been trading sideways since its high of $1.48 established on February 27. The digital asset just had a significant breakout from an important pattern and aims for a high of $1.5 in the long-term.

More Cardano News

Ethereum price poised for greatness as on-chain metrics suggest move to $2,000 is approaching

On January 14, Ethereum price had a significant spike and started to outperform Bitcoin for the first time since July 2020. However, the trend didn’t last long and ETH started to fade away in February despite Bitcoin price also falling. 

More Ethereum News

VET hints at a 75% bull rally

VeChain price has been consolidating in an ascending parallel channel for over the past two months. The pattern’s lower trendline cushioned the recent 42% crash. Bouncing off this support level now suggests the possibility of a 75% upswing towards the channel’s upper trendline at $0.084.

More VeChain news

Crypto bull market warming up as Bitcoin heads for $58,000

The cryptocurrency market seems to be flipping bullish after Bitcoin made a real move above $50,000 on Wednesday during the European session. BTC's move also poked Ethereum bulls to join the market from the sidelines, pushing the price past $1,600. 

More Bitcoin News


Bitcoin Weekly Forecast: BTC journey to $100,000 might be easier than expected

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

Read the weekly forecast