Tezos Price Forecast: XTZ Breaks Chains Preparing for 38% Surge

Last Updated July 23rd 2021
2 Min Read
  • Tezos commences bullish comeback after a key technical breakout.
  • The RSI lifts from the bearish divergence as the trend flips massively bullish.
  • XTZ faces acute resistance at $7.5, likely to impede movement.
  • Tezos has succeeded in detangling from the bearish traps to post an incredible 10% liftoff over the last 24 hours. The cryptocurrency market is mainly sluggish as the weekend session is ushered in. Nevertheless, Tezos is likely to close the week in style, especially after a breakout from the ascending triangle pattern.

    Tezos Braces for a Significant Uplift

    The smart contract token has started to build momentum several days after announcing that the network will soon transition to a new protocol referred to as Tenderbake. At the time of writing, XTZ has extended the break above a crucial ascending triangle pattern.

    Ascending triangles are extremely bullish continuation patterns that tend to form during an uptrend. A consolidation period dominates the price action before a breakout comes into play. An increase in trading volume affirms the breakout with a precise target measured from the triangle's highest to lowest points.

    For instance, Tezos has started the uptrend eying a new all-time high around $9.5. Since the upswing has already been validated, it is up to the bulls to sustain the uptrend.

    XTZ/USD Four-Hour Chart

     

    Meanwhile, the Relative Strength Index (RSI) had settled into a bearish divergence, which marked the previous uptrend's end, allowing for consolidation. The recent price action has seen the indicator break above the descending trendline. If the movement continues into the overbought region, XTZ will likely make significant strides toward $9.5.

    According to the SuperTrend indicator, the uptrend could last longer. This indicator follows an asset's trend and generally points to the expected direction in the near term. Since it flipped bullish toward the end of March, the SuperTrend indicator reinforces the bullish outlook.

    The same uptrend is confirmed by the Moving Average Convergence Divergence (MACD) indicator. Like the SuperTrend indicator, the MACD follows the trend and measures its momentum.

    A break into the positive region implies that the trend has a bullish impulse. Simultaneously, MACD line divergence above the signal validates the bulls' influence over the price.

    XTZ/USD Four-Hour Chart

     

    Tezos Bearish Outlook

    It is worth mentioning that resistance at $7.5 could limit the expected uplift to $9.5. Therefore closing the day under this zone could sabotage the rally. On the downside, rising overhead pressure could push Tezos back to $6.5 and $5.5 support areas, respectively.

     

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