One of the cryptocurrencies that has benefited the least from the great upward cycle that we have been experiencing in the market is Tezos (XTZ). Will he be able to continue taking advantage if we see generalized gains again? To find out, I then carry out a technical analysis.
At the time of writing XTZ is trading at $ 3.98, accumulating a gain of 14.51% in the last 24 hours. Thanks to a market capitalization of $ 2.142 billion, it ranks 49th in the crypto ecosystem today.
Tezos has been one of the most controversial cryptocurrencies, due to the long postponements of the ICO launch, disappointing many of the initial investors, and wreaking havoc on the price when the token finally entered the market in July 2018.
However, after a massive sale, the price of this token has been gradually recovering, slowly, but continuously.
Tezos in principle is a network that offers as value propositions, high energy efficiency, and compatibility with smart contracts such as in Ethereum.
Although it has indeed managed to deliver what it proposed, it seems that the adoption has not been as expected, and that is reflected in such a low position in the market ranking.
Knowing in a general way what the project is and its current state, we will see where the price is most likely to move next.
Tezos Technical Analysis (XTZ)
When we review the daily price chart, we see behavior very similar to what much of the market is doing: lateralizing with some bullish bias.
Following the recent general crash, many cryptocurrencies, including Tezos, spread losses a bit further; however, the bears failed to manufacture a lower effective low, showing depletion, and hinting at the possible bottom of the slide.
A short-term downtrend still prevails, which could put immediate supports to the test again. However, the large rejection of low prices tells us that the larger trend may be exerting pressure.
Right now an upward escape seems more likely, and consequently a resumption of that larger trend. To confirm that this will be the case, the resistance at $ 4.19 must be crossed, which would clear the ground for Tezos (XTZ) up to $ 5.74.
As long as it doesn’t, we may still see some bearish lashes. In case of losing $ 3.43, we can see losses quickly bringing the price to $ 2.90, this being the most important level to maintain in the short term.
Tezos (XTZ) daily price chart. Source: TradingView.
XTZ price forecast
To get a more complete view of Tezos price action, let’s review the monthly chart, where we note that May’s decline did not jeopardize a higher bullish intention.
Although this cryptocurrency has not generated as relevant gains as others, it has kept up with the general sentiment, manufacturing higher lows and highs on the monthly chart.
Last month’s bearish candle made what appears to be a higher low before continuing the trend. This direction could easily push price toward the all-time highs zone, around $ 10.
The current setting is pretty clean. The body of the May candle managed to make support above $ 3.24, if it continues, the next momentum may already be in development.
Losing that level of support would open the way to selling to $ 2.49. Lower is the most relevant level, the one that maintains the upward trend in the medium term, and is at $ 1.91.
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