Tezos Signals Another 50% Upswing Despite the Recent Massive Run-Up
Other2020/04/29 00:00 by Ali Martinez
Tezos’ founders, Arthur and Kathleen Breitman, have been in the center of controversy after hinting that they could be stepping away from the project. Arthur’s recent exclusion from the Tezos Technical Advisory Committee and Kathleen’s disinterest in running her upcoming blockchain-game on top of this protocol set off the alerts among XTZ’s supporters.
While emotions are still running high within the Tezos community, this cryptocurrency was able to shrug off the so-called “FUD” and recover all the losses incurred during Black Thursday.
In fact, XTZ surged by nearly 187% and multiple technical indexes reveal the cryptocurrency could have more gas in its tank.
Traces Left Behind by Tezos’s Recent Retracements
The Tom Demark (TD) Sequential indicator has been extremely accurate at predicting local tops on XTZ’s one-day chart. This technical index was able to anticipate the 18% nosedive that Tezos took on Mar. 27. During that time, it presented a sell signal in the form of a green nine candle that transitioned into a red one candle.
Two weeks later, the TD setup presented the same bearish pattern suggesting that Tezos was bound for another retracement. Coincidentally, the selling pressure behind the smart contracts token increased, which helped to push its price down by 16%.
Then, on Apr. 21, a similar event took place and this altcoin plummeted 7.5% after the sell signal was given.
The most intriguing part about these series of corrections is that on average Tezos went up by 50% afterward. Considering that after the recent pullback the current price levels represent another accumulation zone, Tezos could be preparing to test the late February highs of $4.
Tezos Advances 50% After Each Correction. (Source: TradingView)
Bulls Aim for Higher Highs
Although such a bullish outlook may seem highly speculative after the substantial upswing that this cryptocurrency has gone through, it cannot be omitted. As Bitcoin’s halving approaches, the crypto market may enter a period of exuberance and high volatility.
Under such circumstances, a spike in demand for Tezos may allow it to break above the overhead resistance given by the recent high of $2.90 and the setup trendline at $3.
The bullish momentum would likely be accompanied by panic buying among investors who will be looking to get a piece of the action. If this were to happen, XTZ may shoot up to test the next levels of resistance that sit at $3.4, $3.7, and $4.
Tezos Faces Strong Resistance Ahead. (Source: TradingView)
It is worth mentioning that an increase in supply may be able to put in jeopardy the optimistic scenario. A rejection from the overhead resistance may see Tezos plunge towards the 78.6% or 61.8% Fibonacci retracement levels. These support walls sit at $2.50 and $2.20, respectively.
Time will tell whether or not history will repeat itself and the run-up to Bitcoin’s halving will bring even more volatility into the market.
Featured Image from Unsplash
You should also read...
Altcoins18/11/19 12:58 by Ben Gabriel
EOS is poised for Bull Run But What’s Preventing a Breakout: Factors & Trends
EOS is slightly recovering as bulls seem to be back in the game
The short-term correction is keeping EOS on suspense for a major bullish move
Over the past few days, EOS has seen relatively strong g... Read More
Altcoins08/12/19 22:30 by Cole Petersen
Ethereum Completes Istanbul Hard Fork, but Buyers Aren’t Too Excited
Ethereum’s price action has been closely correlated to Bitcoin’s over the past several weeks, leading ETH’s price to dip into the lower-$150 region, which is where it has been able to find s... Read More
Mining13/04/20 23:00 by Cole Petersen
The Fate of Bitcoin Will be Determined By This Key Level: Top Trader
Bitcoin’s latest rejection within the lower-$7,000 region led the cryptocurrency to break below its key support at $6,800, a level that bulls are currently in the process of reclaiming.
This ongoing... Read More
Bitcoin29/04/20 16:41 by Nick Chong
Bitcoin Just Flew to $8,400, Leaving $40M of BitMEX Destruction In Its Wake
Days of consolidation under $7,800 culminated an explosive move on Wednesday, which resulted in Bitcoin rallying from $7,700 to $8,400 within 12 hours’ time — an uptrend of nearly 10%.
Chart ... Read More
Bitcoin08/05/20 17:01 by Ali Martinez
Chartist Who Called $6,400 Bottom Says Bitcoin Looks “Toppy”
Bitcoin enjoyed an impressive rally over the past 60 hours. The flagship cryptocurrency rose by nearly 13%. The sudden upswing allowed it to jump from a low of $8,900 to test the psychological $10,000... Read More