Tezos Price Forecast: XTZ Bulls Contemplate Rise To $3.5
- Tezos Price gained 24% from weekly support to trade at $2.5.
- Multiple short-term buy signals affirm the bullish narrative for gains eyeing $3.5.
Tezos has been blasted into the green after trading a July low of $2.1. As XTZ neared oversold conditions, bulls took over control. In the last 48 hours, several resistance levels have become vital support areas, allowing Tezos to lift higher.
At the time of writing, Tezos is trading at $2.5 while bulls work around the clock to crack the immediate resistance at the 100 Simple Moving Average. A confirmed move above this zone could bolster XTZ above the 200 SMA in the same four-hour timeframe. Thus, paving the way for gains toward the coveted $3.5.
Tezos Bulls Throw Jabs As $3.5 Beckons
Following the majestic upswing from $2.1 to $2.5, Tezos investors are convinced that the uptrend is firm enough to lift to $3, if not to $3.5. The bullish grip has been affirmed by the Relative Strength Index (RSI) based on the four-hour chart.
This technical tool follows the trend of an asset and calculates its strength and its consistent movement from the oversold area to the overbought paints a massive bullish picture.
The same bullish narrative has been validated by the Moving Average Convergence Divergence (MACD) indicator. The odds for a potential rally increased following the support at $2.1 and the 12-day exponential moving average (EMA) cross above the 26-day EMA.
Subsequently, Tezos will become more bullish as the MACD moves above the mean line and into the positive area. The widening divergence between the moving averages shows that buyers have the upper hand, and the bullish outlook is bound to hold, at least in the near term.
XTZ/USD four-hour chart
It is imperative to recognize a V-shaped recovery forming in the same four-hour time frame. The pattern is highly bullish and often leads to a significant move in price. Hence, Tezos has the technical capability to rise to at least $3 before triggering another run to $3.5.
Looking At The Other Side Of The Picture
The TD Sequential indicator has presented two sell signals on the four-hour and two-hour charts. The calls to sell Tezos appeared in green nine candlesticks and implied that the buying pressure might dwindle.
Tezos price chart
As bulls lose traction, bears are bound to increase their entries. Thus, cutting short the breakout to $3.5. The TD Sequential is used widely by traders to identify positons to enter or exit the market.