Tezos (XTZ) doubles in a week, what’s next?

The price of Tezos (XTZ) has more than doubled over the past week and is currently challenging May’s all-time high of $ 8.42.

Tezos grows in a parabolic shape

Tezos hit an all-time high (ATH) of $ 8.42 on May 7, 2021. The altcoin then saw a 75% correction to a macro low of $ 2.10 on July 20.

After three months of consolidation from May to August, the token broke the USD 4 resistance area (green rectangle). It then hit the 0.618 fib retracement level of the entire downtrend, turning the $ 4 resistance into support on September 7th.

One day later, the price generated a hammer candle (blue arrow) to initiate a parabolic upward movement from September 9th. Over the past week, the XTZ price has doubled and is at $ 7.4 at the time of writing.

The breakout on September 9th and the subsequent uptrend are confirmed by the high trading volume. The altcoin then confirmed the aforementioned 0.618 fib retracement level as support and resumed its upward movement.

Daily XTZ / USDT Chart | Source: TradingView

Technical indicators

Technical indicators on the daily timeframe support the ongoing breakout. The RSI has pulled back from the neutral zone at 50 and is strengthening. Currently, the indicator has regained the bullish zone above 70 and is not creating a bearish divergence.

The MACD signal line has been in positive territory since the beginning of August and is rising. The histogram also produces higher momentum bars showing that bullish momentum is strengthening. In addition, the stochastic oscillator has also returned to the bullish zone.

Daily XTZ / USDT Chart | Source: TradingView

Future movement

The next up target is the ATH level at $ 8.42. A close of the daily candle above $ 7.58, which is the high of the candle on September 13, would be a bullish signal.

The next goals are identified based on the external fib retracement level. If the price breaks above the ATH, the next targets will be $ 10.14 and $ 11.04, respectively, the fib retracement levels of 1.272 and 1.414. If these levels are also captured, the uptrend may move towards $ 12.33 and $ 14.75, respectively, the outer fib retracement levels of 1.618 and 2.

Daily XTZ / USDT Chart | Source: TradingView

The shorter-term 4-hour chart shows a strong bullish parallel channel. At the same time we see the previous resistance at $ 6.20 that has been converted into support (green rectangle).

Currently, the price is near the center line of the channel, which has acted as a resistance since September 11th. If XTZ manages to break this resistance line and confirm it as support, it can be reached. New ATH in the next few days.

On the flip side, if the midline is still viewed as resistance, the price will move back towards the channel’s support line, which is currently around the $ 7 mark, and a collapse in the channel could move price towards the above support area at $ 6.20 lead.

XTZ / USDT 4-hour chart | Source: TradingView

You can see the XTZ price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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