is flashing a number of buy signals that may allow it to recover lost ground.

Key Takeaways

  • Tezos has endured a three-month-long corrective period that saw its price plummet nearly 60%.
  • Despite the significant losses incurred, it appears that XTZ is on its way to greener pastures.
  • A spike in buying pressure around the current price levels may see prices rise to $2.3 or $2.7.

While investors struggle to make heads or tails of the U.S. Presidential elections, Tezos is quietly printing bullish tape.

Tezos Bulls Appears Ready to Rebound

Tezos has been one of the main victims of the crypto market’s recent bloodbath.

The smart contracts token saw its price plunge nearly 60% over the past three months, dropping from an all-time high of $4.5 to hit a low of $1.8 recently.

Despite the massive losses, however, it appears that the token is on its way to greener pastures.

The TD Sequential indicator presented a buy signal in the form of a green nine candlestick on XTZ’s daily chart. The bullish formation forecasts that an increase in buying pressure may lead to a one-to-four daily candlesticks surge or the beginning of a new upward countdown.

Moreover, a bullish divergence developed within the same time frame between Tezos’ price and the Relative Strength Index. This technical pattern was created as prices began making a series of lower lows while the RSI made higher lows.

Such market behavior indicates that this token’s three-month downtrend is approaching exhaustion.

XTZ/USD Daily Chart

By measuring the Fibonacci retracement index from mid-March’s low of $0.93 to the recent all-time high of $4.5, multiple targets can be defined.

Based on this technical indicator, a spike in buy orders around the current price levels could push Tezos to $2.3. But if the buying pressure is strong enough, prices may advance towards the next critical area of resistance, around $2.7.

XTZ/USD Daily Chart

Though indicators suggest that Tezos is ready to rebound, the 23.6% Fib must hold to validate the bullish outlook.

Failing to do so will likely lead to continued losses as there are few significant support barriers underneath the $1.8 hurdle. Indeed, the next areas of interest sit at $1.5 and $1.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link