Tezos crypto surges 40%, breaks 8-month resistance with THIS move

by
  • XTZ is the biggest gainer in the last 24 hours.
  • It is facing a decline but maintains the $1 price level.

As a seasoned analyst with years of experience navigating the volatile cryptocurrency market, I can confidently say that Tezos (XTZ) is currently one of the most intriguing assets to watch. The recent surge past an eight-month resistance level and the subsequent consolidation around $1 is nothing short of impressive.

Lately, the cryptocurrency Tezos (XTZ) has climbed up among digital assets witnessing notable price increases. Within the last day alone, Tezos has jumped over 40%, which represents its largest increase in many months and breaks a major resistance point.

Tezos crypto surges past eight-month resistance

At the moment of publishing, Tezos cryptocurrency was trading around $1.14, slightly pulling back from its peak of $1.24 attained during the day. This current price point marks an eight-month high for XTZ.

The rally began when the price surpassed the 200-day Simple Moving Average (SMA) at $0.75, indicating a resurgence of positive market sentiment.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

In simpler terms, the Relative Strength Index, or RSI, currently reads 77.15, which indicates the market is overbought and could lead to short-term profit-taking. However, the Moving Average Convergence Divergence (MACD) chart still shows a bullish trend, implying that there’s continued upward movement in the market for the near future.

As a researcher studying the price movements of Tezos, I’ve noticed that a significant resistance seems to be forming around the 4.236 Fibonacci retracement level, which translates to approximately $1.15. So far, Tezos has found it challenging to breach this resistance convincingly.

The Parabolic Stop and Reverse (SAR) supports the upward movement in the market, as its values are situated beneath the price fluctuations. The significant surge in trading activity suggests heightened investor curiosity. However, sustaining this trend hinges on overcoming potential resistance levels.

Trading volume spikes alongside price rally

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

The trading volume for Tezos cryptocurrency has reflected its significant price increase, setting new milestones. According to information from Santiment, the trading volume of XTZ grew from around $60 million to more than $500 million by the end of trading on November 18th.

Currently, the trading volume has surpassed $870 million, which is its peak level since the year 2021.

As an analyst, I’ve noticed a significant surge in the market volume for Tezos crypto, which indicates a surge in market activity and increasing investor interest. This trend strengthens the optimistic outlook, or bullish sentiment, towards Tezos.

Potential targets and risks for Tezos crypto

If the positive trend persists for Tezos, it might aim for resistance levels around $1.30 and then potentially $1.50, given that there’s enough buying interest. But if it can’t maintain its current support at approximately $0.93, a possible reversal could occur. In this case, the 200-day Simple Moving Average (SMA) at around $0.75 would become an important benchmark to watch.

Read morePEPE flips Optimism: Can OP emerge from the memecoin mania?

A breach below this level could shift control back to bears, with $0.60 becoming a key focus.

In simpler terms, when the Relative Strength Index (RSI) shows that a security is overbought, it suggests there might be temporary high selling pressure in the near future. On the other hand, if there’s a potential discrepancy between the Moving Average Convergence Divergence (MACD), it could mean that the bullish trend may be weakening.

To maintain continuous expansion, it’s crucial for volumes to stay steady. Any decrease might suggest that the market is becoming depleted or exhausted.

The price of Tezos cryptocurrency is at a crucial turning point. Whether it continues to climb or stabilizes will be influenced by investor feelings, outside events, and the equilibrium between supply and demand. Traders are advised to stay alert for indications of the upcoming major shift.

Read More

2024-11-19 21:27