Tezos (XTZ) Aims To Reach a New All-Time High
Both the XTZ/USD and the XTZ/BTC pairs have been declining since the beginning of February.
However, the current move and technical indicators suggest that the retracement is nearing its end and the price will soon continue moving upwards.
Tezos has been following a rising support line since it reached a low on October 27, 2019. While the price dropped below this area at the beginning of July, it found support above the 200-day moving average (MA) and has since reclaimed that area.
Failed breakdowns such as these often indicate that the price will reverse in the other direction. The price is trading above both the 50 and 200-day MAs, which previously made a bullish cross. Furthermore, the daily RSI is above 50 and there is no bearish divergence yet.
In addition, it seems that the price is trading inside a symmetrical triangle, which can formed be by drawing a descending resistance line from the February high. Since the triangle is taking place after an upward move, a breakout upwards from the pattern is expected.
If so, the closest resistance area would be found at 40,000 satoshis.
Cryptocurrency trader @Altcoinsherpa stated that XTZ still looks bullish, and should rally after a retracement. Following the tweet, the price has already reached the outlined support area and has begun to move upwards.
The XTZ/USD pair also looks bullish, showing a breakout from a descending resistance line that had been in place since February.
After breaking out, the price returned to validate the line as support, along with the 50-day MA. Once it did, the price created a bullish engulfing pattern, a sign that the upward trend is likely to resume.
If the price continues rising, the closest resistance area would be found at $3.9, near the previous February highs.
As for the wave count, XTZ seems to have begun a new five-wave formation with its lows on June 6, currently trading in the fifth wave.
If the wave count is correct, the likely top for wave five would be at $3.7, if it extends. If it does, the price should reach the $3.9 resistance area.
A decline below the support line of the channel at $2.7 would invalidate the wave count.
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