Tezos Price Forecast: XTZ Gradually Builds Uptrend to $8 While Investor Sentiment Flips Bullish
- Tezos's technical outlook is improving according to the short-term analysis.
- A growing volume is a bullish signal for the up-trending price.
Tezos is in the green like other altcoins in the top 50. After a minor selloff to $5.5 earlier in the week, recovery has occurred. Support at the 100 Simple Moving Average (SMA) paved the way for the ongoing bullish momentum. Bulls are looking forward to cracking the resistance at $7, which will open the door to another significant liftoff eyeing $8 and $1, respectively.
Tezos uptrend steadies as sentiments flip positive
On-chain data by Santiment, a behavioral analytics platform, reveals a consistent growth in Tezos trading volume. The volume model collects the trading data across exchanges, and its aggregate is presented on a graph.
An uptick in volume directly impacts the price of the asset. As the volume rises, the price hits higher levels. This means investor sentiment and speculation turn positive, thus a bullish signal.
Tezos volume chart
Tezos breakout draws nigh
Tezos is exchanging hands at $6.8 at the time of writing. Its immediate upside has been capped under the ascending parallel channel's upper edge. If broken, the uptrend will strike past $7, a move likely to trigger massive buy orders. Tezos bulls anticipate that trading above $8 will catapult them to $1.
XTZ/USD four-hour chart
The same four-hour chart shines a light on a bullish impulse from the Moving Average Convergence Divergence. This indicator recently bounced off the midline, which called more investors into the market. The MACD line (blue) divergence above the signal line adds credence to the bullish narrative. Therefore, the least resistance path is upward, and the technical outlook may last longer if the short-term hurdle at $7 cracks.
Tezos' bearish outlook
Closing the day under $7 would trigger an increase in overhead pressure. A correction may ensue toward the channel's middle boundary on the downside. If the gravitational pull becomes too strong to stop, Tezos will close the gap heading to $5.5. However, the 200 SMA and the 50 SMA are in line to prevent the bearish leg from extending further.