Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
With the value of Bitcoin surging to hit yet another all-time high above $52k, the market’s altcoins surged too. With a market capitalization of $3.6 billion, Tezos was ranked 24th on CoinMarketCap’s rankings. It should be noted, however, that at press time, XTZ’s price was close to the peak after the crypto was rejected at its immediate resistance level.
Tezos daily chart
Source: XTZUSD on TradingView
Tezos’s [XTZ] daily chart highlighted that the price has been registering a strong uptrend since the beginning of February. This surge was enclosed within an ascending channel, following which it also witnessed a breakdown.
The breach of the said pattern on XTZ’s charts suggested that $4.15 was a strong immediate support for the crypto-asset’s value. Tezos’s price has been moving sideways for the past couple of days, within the range of $5.75 and $4.15.
Reasoning
Tezos’s cryptocurrency market hit a new all-time high recently and the market momentum has remained high since. The same was highlighted by the Awesome Oscillator, with the indicator noting a drop after the breakdown. However, this did not imply a bearish takeover as the market was still extremely bullish, at press time.
The Bollinger Bands were diverging, indicating that Tezos’s market was filled with volatility. However, with the price momentum dropping, the crypto’s price may continue to move along the current range.
Finally, the Relative Strength Index highlighted that the crypto-asset lay in the overbought zone, before falling below it. With the value of XTZ still high, traders were still buying the digital asset since the RSI was still close to the overbought zone.
Conclusion
Tezos’s daily chart pictured a breakdown of its ascending channel pattern, following which, the value of XTZ nearly collapsed by 35%. However, the crypto’s price had begun to recover, with XTZ holding on to the $4.15-price level for support at press time. The cryptocurrency’s value may remain within this level if the volatility in the market reduces.
