Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The price of most altcoins has been mirroring the price movement of the Bitcoin market. Tezos [XTZ], for the past few days, was noting a downward trend as the price tried to stabilize after a sudden surge, with the crypto breaching the support at $2.10. With the price trying to find stable ground on the charts, XTZ was being traded at $1.97 with a market cap of $1.512 billion, at press time.
XTZ four-hour chart
Source: XTZUSD on TradingView
XTZ’s attached charts noted its price falling within a descending channel. This channel was formed from the peak at $2.24 and extended till the low at $1.90. However, since then, the price has been trying to push up and this could be an opportunity for the market’s traders to go long on the digital asset.
Reasoning
The 50 moving average, although twisted into the price bars, remained above the price candles. This could be a bearish sign, but the gap has been closing and this could be seen as a sign of price reversal.
The Relative Strength Index was observed to have reached a point of near equilibrium, a finding that meant that XTZ was being equally bought and sold. However, there was also an upward spike, meaning that the buyers were gaining more momentum. This could push the coin’s value higher on the charts.
On the contrary, the Awesome Oscillator highlighted bearish momentum prevailing in the XTZ market. However, the length of the red bars did not suggest that the momentum was strong. This could change as the coin’s market bulls take over the market.
Position
Entry: $1.98
Stop-Loss: $1.92
Take-Profit: $2.07
Risk-to-Reward: 1.82
Conclusion
At the time of writing, XTZ’s market had reached a decisive state, one wherein its price might break out of the falling pattern and travel higher. The market’s traders can go long on the digital asset and take profits in the long-term at $2.07, a level which was close to the immediate resistance at $2.10. XTZ may require more than one chance to breach this resistance again, however.
