Tezos Technical Analysis: XTZ resumed uptrend on breaking this key pattern resistance

Tezos is back to trading in the green after bouncing off support in the range between $1.98 and $2. A break above the descending triangle on the 4-hour chart brings into the picture the possibility of formidable gains to $2.34.

Tezos technical pattern turns significantly bullish

At the time of writing, XTZ exchanging hands at $2.1, following a remarkable rebound from the crucial support at $1.98. The price action beyond the hypotenuse of the triangle adds weight to the bullish narrative. Buyers must hold the price above this vital pattern to sustain the expected spike.

XTZ/USD 4-hour chart

The same 4-hour chart shows Tezos trading above the 50 Simple Moving Average. If the cryptoasset holds this fundamental level, the bullish case to $2.34 would be validated. The Relative Strength Index has crossed above the midline and is on the way to the oversold, bringing to light the intensifying bullish grip.

XTZ/USD 4-hour chart

On the flip side, XTZ/USD is well protected, with the 200 SMA and the 100 SMA standing in line to cushion buyers from acute losses.

XTZ/USD 1-hour chart

Short term analysis shows that XTZ has encountered a supply barrier at $2.12. Sellers appear to be gaining traction but lack the volume to push the price lower significantly. The bullish narrative will be saved if Tezos holds the 200 SMA.

On the other hand, trading below the 200 SMA might trigger more sell orders, in turn, support a bearish pattern eyeing the demand area between $1.98 and $2. The 100 SMA and the 50 SMA will absorb some of the selling pressure while controlling the drop.