- Tezos commences recovery to reclaim all-time highs and rally above $6.
- XTZ’s ongoing uptrend reinforced by the 12-hour SuperTrend indicator.
- The TD Sequential indicator recently presented a call to sell Tezos, likely to thwart the recovery mission.
Tezos has broken out of consolidation and is making a comeback toward the all-time high. The recovery has been consistent after the losses incurred in February. Buyer congestion around $3.25 allowed bulls to focus on achieving another new record high. At the time of writing, XTZ trades at $4.9 while bulls battle the immediate resistance at $5.
Tezos Commences Breakout Toward $6
The 12-hour chart illustrates the formation of an ascending triangle. This pattern is often used in technical analysis as a bullish signal. It is molded by two trend lines that connect the relatively equal peaks and the ascending lows.
Since an ascending triangle is a bullish continuation pattern, a breakout is expected when the price slices through the x-axis resistance. The upswing is confirmed by an uptick in trading volume, followed by a sharp rise in price.
Triangles have precise breakout targets measured from the highest to the lowest points. Tezos started the journey to the new all-time high around $6 after spiking above the upper trend line, as illustrated on the chart.
XTZ/USD 12-Hour Chart
Tezos uptrend is also emphasized by the Moving Average Convergence Divergence (MACD) indicator. As long as the MACD line (blue) stays above the signal line, buyers will be in control.
Simultaneously, the SuperTrend indicator on the same chart has recently presented a signal to long XTZ. In other words, the token’s uptrend has been validated. Therefore, the least resistance path is toward the record high of $5.6 and the anticipated new all-time high at $6.
XTZ/USD 12-Hour Chart
Looking at the Other Side of the Picture
The TD Sequential indicator recently flashed a sell signal on the daily chart. This call to sell was presented in a green nine candlestick, implying that the bullish momentum was starting to lose traction. If validated, Tezos will drop in one to four candlesticks, marking the beginning of a downtrend.
XTZ/USD Daily Chart
On the downside, support is envisaged at the triangles x-axis ($4.6). If a bearish outlook confirms as losses increase, XTZ will seek refuge at $4.2, a confluence highlighted by the 50 Simple Moving Average (SMA) and the 100 SMA on the 12-hour chart.