Tezos Price Analysis: XTZ Hangs Onto Critical Support Ahead of Upswing to $7

Last Updated July 23rd 2021
2 Min Read
  • Tezos holds within ascending parallel channel as bulls focus recovery.
  • The 50 SMA keeps bears in check to avoid losses toward $4.
  • The MACD reveals that the bears still have immense influence in the market.
  • Tezos trades at $5.5 after resuming recovery from support established by the 50 Simple Moving Average (SMA) on the four-hour chart. For the past couple of days, the bearish wave in the market seems to be calming down crypto assets rebound. If the critical support at the 50 SMA holds, Tezos uptrend will target uplift to highs above $7.

    Tezos Bounces Off Crucial Support

    As mentioned, the support at the 50 SMA and, by extension, the ascending parallel channel’s lower boundary support seems robust enough to give bulls ample time to plan the attack mission for a significant recovery. On the upside, bulls must extend the price action above the middle layer of the channel to secure the trajectory to $7.

    XTZ/USD Daily Chart

     Tezos Daily Chart

    The Relative Strength Index (RSI) on the same chart suggests that buyers increase traction. Support seems to have been established slightly under the midline, which brings to light the impending bullish outlook. As the direction changes upward, Tezos is bound to break barriers back to $7.5.

    The daily chart brings a bullish SuperTrend indicator into the picture, reinforcing the recovery. This call to buy manifested at the beginning of April and has stayed intact ever since. The SuperTrend indicator follows the direction of a trend and suggests either short or long the asset.

    XTZ/USD Daily Chart

    Tezos Daily Chart

    Moving Average Convergence Divergence (MACD) indicator differs because it has a bearish outlook. The MACD line (blue) has recently crossed under the signal line, adding credence to the bearish scope.  Therefore, if support at the 50 SMA fails to hold, Tezos may break down toward $4.5 and $3.5.

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