Tezos (XTZ): The Buyers Remain Reluctant

August 10, 2020   Tezos

Although Tezos (XTZ) has showcased tremendous progress over the year, having gained 115% against USD and 90.6% when opposed to Bitcoin, its price action seems to have stalled near the resistance area at $3 that has proven impregnable for more than four months. Tezos was one of the most attractive altcoins for the period of six weeks after the notorious market crash in March, mainly because it displayed consistent gains that amounted to 135%.

However, once the price had hit the wall at $3, it totally lost the upside momentum and went on ranging in the corridor between the said resistance and the support at $2.5, thus providing abundant opportunities for those who are skilled in range trading.

Shot-loss hunting and bullish expectations

But while Tezos has trouble dealing with the bearish pressure, the larger part of cryptocurrency market participants have already jumped on the bullish train that travels uphill, and even reached the phase of the secondary uptrend. XTZ has been passive in that regard, but this coin undoubtedly bears significant potential, both in terms of fundamentals and price action.

It appears that the large players are still in the process of position obtainment before the ultimate breakthrough of resistance, which is evident from a few recent instances of stop-loss hunting when the price had briefly descended to $2.19 only to explode to $3.34 and then retreat inside the established channel.

1-day XTZ/USDT chart

It is interesting to see how the price action respects the Fibonacci retracement levels as it continuously employs them as support/resistance areas. Presently, the support stands at $2.75, although XTZ is still incapable to fully breach the resistance that converges with the 0.78 Fibo retracement. However, we see that the latest instances of stop-loss hunting have actually pushed the price towards forming the broadening bottom formation that is considered bullish, although it works best as a reversal pattern.

But despite acting somewhat inertly, XTZ is still plodding to the upside bit by bit, which could hint at the crowd’s overall bullish inclination. It appears that Tezos has taken the opposing stance with regard to the rest of the market, so the expected rally is likely to take place when BTC and the bullish altcoins enter the correction mode.

  • Stochastic demonstrates an obvious bullish signal as it is about to make the corresponding crossover at 26, which is near the overbought region. Given that the price has successfully pushed away from the support at $2.74, it might result in another trip to $3 - $3.2;
  • MACD, however, suggests that the expected price appreciation might not lead to a decisive bull rally because the indicator is till too bearish, while the trading volume keeps declining;

The Average True Range indicator is sloping downward, which signifies the anticipated decrease of volatility, hence the modesty of potential gains.

We predict that Tezos will remain moderately bullish with the possibility of a breakout towards $3.5 - $4 after the confirmed ascension above $3 and the breach of a symmetrical triangle, which is a continuation pattern. But stay aware of the possibility of another instance of stop-loss hunting, so make sure to secure your position accordingly.

Author: Alex Paulson for Crypto-Rating.com

Related Crypto Forecasts and Analytics

Top upcoming ICOs

ICOs Rating Days left
1 DogData 5 4
2 2local 5 35
3 SerenitySource 5 64
4 Geco.one 5 65
5 Tycoon 5 65
6 Pawtocol 4.9 36
7 Curate 4.9 57
8 Ledder 4.9 65
9 IdeaFex 4.9 598
10 BitWings 4.8 64

ICOs rating

Top Cryptocurrencies

Сryptocurrency CVIX Price Change, 24h
Bitcoin 52 $13 032.52 -0.01%
Ethereum 33 $392.72 -3.78%
Tether 1 $1.00 0.01%
XRP 8 $0.248409 -1.97%
Bitcoin Cash 58 $258.92 -4.40%
Chainlink 46 $11.77 -4.74%
Binance Coin 42 $31.16 2.90%
Polkadot 28 $4.63 6.23%
Litecoin 46 $56.40 -4.29%
Bitcoin SV 14 $173.78 -4.86%

Cryptocurrencies rating

Top Crypto Brokers

Broker Status
1 FIBO Group information
2 XM information
3 OctaFX information
4 101investing information
5 T1Markets information
6 easyMarkets information
7 Orbex information
8 LH Crypto information
9 USGFX information
10 FOREX.com information

Brokers rating

Top Crypto Exchanges

Exchange Volume change, 24h
1 Binance 36.37%
2 ZG.com 2.65%
3 HBTC 13.25%
4 CITEX 11.02%
5 TAGZ Exchange 11.50%
6 Bidesk 14.76%
7 IDCM -11.63%
8 Bitribe 17.13%
9 Binance.KR 33.14%
10 Chiliz 16.90%

Exchanges rating