- Tezos prints a bull flag pattern, hinting at a colossal liftoff to new all-time high of $8.15.
- Closing the day above $06 will likely validate the potential uptrend.
- Losing support at the 50 SMA may trigger massive losses toward the primary support at $4.4.
Tezos has been facing increased selling pressure since April 6, when the bullish momentum lost steam at $6.7. Appreciable declines came into play, with XTZ diving toward $5. Meanwhile, the 50 Simple Moving Average (SMA) support on the four-hour chart cut short the gravitational force.
At the time of writing, Tezos trades at $5.8 as bulls strive to overcome the resistance at $6. Note that trading past this level may call for more buy orders as speculation mounts for massive gains.
Tezos Pivotal at Key Technical Pattern Resistance
A bull flag pattern has formed on the four-hour chart. As the name suggests, this is a bullish continuation pattern. After a significant uptick in price (the pole), the flag forms followed by resistance and, lastly, a retreat.
A bull flag pattern only conforms when the correction stops at relatively halfway the flag pole. Otherwise, a descending channel comes into the picture. Currently, the pattern meets all the requirements of a bull flag. Therefore, price action above the upper trendline, and by extension, the seller congestion at $6, would lead to a breakout as far as $8.15.
XTZ/USD Four-Hour Chart
The 12-hour SuperTrend indicator reveals a bullish impulse following a signal Tezos at the beginning of April. This call to buy is manifested by the indicator changing the color to green and moving under the price. The described breakout can occur as long as the SuperTrend indicator stays in the same position.
Similarly, another bullish signal has been presented by the Parabolic SAR, which recently flipped beneath the price.
The parabolas (dots) currently follow the price action, confirming that the slightest resistance path is upward.
XTZ/USD 12-Hour Chart
Looking at the Other Side of the Fence
It is worth mentioning that the bullish outlook will be sabotaged if the bull flag pattern fails to confirm while the hurdle at $6 remains intact. Selling pressure is bound to intensify to the extent of jeopardizing the 50 SMA on the four-hour chart. It is essential to keep in mind other support levels highlighted at $5, the 200 SMA at $4.4, and the primary anchor at $4.