- Tezos slows down price action under $7.5 as ascending triangle breakout targets $14.
- Support at $6 and $5.5 remains key to XTZ continuing with the colossal upswing.
- Resistance at $7.5 may hinder the anticipated breakout, adding pressure onto the near-term support levels.
Tezos hit a wall at $7.5, cutting short a potentially majestic upswing. The previous gains occurred following a breakout from an ascending triangle pattern. Despite the correction toward $6, the technical pattern's impact seems intact and XTZ may continue to rally, especially if critical support confirms.
Tezos Bulls Unlikely to Give up on Liftoff to $14
Tezos trades at $6.36 at the time of writing. Overhead pressure surged after hitting the barrier at $7.5. For now, bulls have shifted the focus on securing higher support, preferably at $6 or the triangle's x-axis at $5.5.
Note that ascending triangles are bullish continuation patterns. A significant breakout is expected to come into play following a break past the horizontal trendline resistance. Triangles tend to have exact targets on breaking out, measured from the patterns' highest to lowest points. For instance, Tezos's recent break looks forward to a massive 150% liftoff to areas slightly below $14.
XTZ/USD Four-Hour Chart
The slightest resistance path is upward based on the Moving Average Convergence Divergence (MACD). This indicator identifies positions to sell the top or by the dip. Currently, the MACD line (blue) holds above the signal line, suggesting that bulls are still in control. Tezos will likely drop in value, although slightly before resuming the uptrend eyeing new all-time highs around $14.
Looking at the Other Side of the Picture
It is essential to realize the Tezos has already been rejected from $7.5. At the time of writing, buyers seek higher support at $6 or $5.5 (triangle's x-axis). If this support zone fails to hold, we will likely see overhead pressure mount. Price action under $5.5 may extend the losses toward $4. The 50 Simple Moving Average (SMA) is in line to cushion Tezos. If push comes to shove, the primary anchor at 43 will be tested.