XTZ is showing a bullish signal after a sharp decline
Tezos (XTZ) is showing bullish signs as it breaks the long-term descending resistance line. However, due to neutral technical indicators, the uptrend has not yet been confirmed.
Descending resistance line
XTZ has been declining along with a descending resistance line since hitting an all-time high of $9.17 on Oct. 14. The downtrend has resulted in a low of $2.53 on Jan 24th.
Since then, XTZ has been rising and is currently in the process of breaking the aforementioned resistance line, which also coincides with the $3.90 horizontal resistance area.
If the token manages to move above it, the closest resistance will come in at $5.85. This is the 0.5 Fib retracement resistance and coincides with the horizontal resistance area.
From the current price, it will increase by 48.55%.
Trader @one_bald_dude tweeted a chart of XTZ and said that the token could eventually move to a new all-time high above $11.
The source: Twitter
For this move to work, XTZ must first break above the $3.85 horizontal zone.
While a breakout is likely, the technical indicators are completely neutral for the daily time frame.
First, the MACD remains negative (green symbol) despite moving higher. Similarly, the RSI is turning up, but it is still below the 50 level. Both are signs that the trend is slowly turning up, but has not yet confirmed that the trend is up.
Moreover, the price is right on the middle line of the Bollinger Band indicator, another sign of a neutral bias.
XTZ/USDT 3-day chart | Source: TradingView
Looking at the weekly chart of XTZ, we can see the importance of the $3.90 horizontal zone as it has consistently acted as support and resistance since March 2021.
Therefore, regaining this zone will be a strong sign that the uptrend will continue.
Weekly XTZ/USDT chart | Source: TradingView
The XTZ/BTC chart is showing a similar move, except that the pair is still moving along the descending resistance line.
After initially dipping below the 9000 satoshis zone, has reclaimed it and is in the process of confirming it as support. If the price succeeds in this, it will be a strong sign that a bullish reversal is imminent.
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.
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