Categories: Market

Tezos (XTZ) recovers quickly and can reach a new ATH

Key factors

Tezos is up more than 36% in the past 18 hours.
The price seems to be approaching a critical point.
If XTZ breaks the $ 7.20 mark, it can rise to $ 12.25.

Tezos’ entry into the NFT market has caught the attention of investors. XTZ has rebounded sharply from a steep correction that could take it to a new all-time high.

Tezos seems to be heading for a new ATH

Tezos has a bright future ahead of it after making a name for itself as an environmentally friendly NFT blockchain.

The NFTs have become a hit on Tezos, with rap superstar Doja Cat releasing her collection on the OneOf platform earlier this month. F1 teams McLaren and Red Bull Racing NFT also made their debut on Tezos earlier this year as the platform’s carbon footprint is lower than that of its competitors.

XTZ appears to have been forming an inverse head and shoulders pattern on its daily chart since mid-April, which is currently the right shoulder of that pattern.

Further increased buying pressure could drive Tezos over the cutout of the pattern, which would lead to a significant profit. A break above the stiff resistance at $ 7.20 could trigger a 70% rally towards $ 12.25.

This up target is identified by adding the height of the pattern to the breakout point.

Daily FET / USDT Chart | Source: TradingView

The fib retracement indicator, measured from the July 20 low of $ 2.15 to the high of September 13 of $ 7.20, suggests that Tezos may have some hurdles on the upside. These hurdles are the $ 8.60, $ 9.30 and $ 10.30 levels, respectively.

It’s worth noting that if Tezos doesn’t break over the neckline of the head-and-shoulders pattern at $ 7.20, a rejection is likely, causing a surge in selling pressure. XTZ will then pull back, but the price must stay above the $ 4.70 to $ 4.10 zone for the bullish outlook to remain intact. A loss could result in a quick drop to $ 3.30.

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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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.