Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Bitcoin’s market bulls have halted their surge upwards, but the altcoin market is continuing to register a staggering appreciation in value and price. Tezos [XTZ], ranked 20th on CoinMarketCap’s list due to a market cap of $1.73 billion, is one of the many altcoins to share this appreciation.
One of the reasons why this has been the case may be because the world’s largest altcoin has been noting a surging market too. The said market momentum pushed XTZ past its support at $2.26, with the crypto trading at $2.33, at press time.
Tezos four-hour chart
Source: XTZ/USD on TradingView
XTZ’s four-hour chart attached herein was highlighting the cryptocurrency’s value surging past its various resistance levels after a period of consolidation. The consolidation was visible between $1.94 to $2.11, after which a surge pushed the value higher. The cryptocurrency’s press time trading price was registering strong northbound momentum and opened up the opportunity to go long.
Reasoning
The said surge was backed by the Relative Strength Index also rising on the charts. At the time of writing, the value of the RSI was touching the overbought zone. Although there could be a selling pressure introduced in the market, ETH’s price trend could push its value higher.
The Awesome Oscillator also underlined rising buying momentum. The indicator showed the green bars rising on the positive end, signaling a great buying pressure evolving in the market, at the time of writing.
Position
Entry: $2.37
Stop-Loss: $2.25
Take-Profit: $2.59
Risk-to-Reward: 2.09
Conclusion
With the value of XTZ continuing to rally, traders can take profit at $2.59, on the back of the price boost it will soon witness. Selling pressure will most likely follow this surging market. However, that would be a longer-term picture for the altcoin.
