Tezos pumps +10% in 24 hours – Will the bullish momentum extend?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Tezos cracked a key long-term trendline resistance.
- Tezos’ volume was up +900% at press time.
Tezos [XTZ] fronted a surprise pump on 10 October, rallying +10% in less than 24 hours before press time. The bullish momentum cracked a crucial long-term trendline resistance. But the rally encountered another hurdle at $0.700.
At the time of writing, Bitcoin [BTC] defended $27k and aimed at $28k with an established resistance level of $28.5k. As such, XTZ could attempt to extend the rally, but these hurdles could derail bulls.
Can Tezos bulls crack these hurdles?
There was slight bullish exhaustion at press time, as shown by the upper daily candlestick wick at the roadblock of $0.700. The roadblock is a previously invalidated daily bullish order block of $0.716 – $0.744 (red) formed on 18 June 2023.
The above level was flipped to a resistance zone in mid-August. However, bulls were yet to crack flip to support despite overcoming a long-term trendline resistance level at press time. So, the bullish exhaustion seen at press time could complicate further rally above the $0.70 roadblock.
But late bulls can re-enter at the confluence of the previous support and the long-term trendline resistance at $0.680 or $0.650, targeting the overhead $0.7 roadblock.
Conversely, a convincing daily candlestick close above the $0.700 hurdle could tip XTZ to focus on the next target at $0.800 (a daily bearish OB).
Nevertheless, Spot market demand and buying pressure surged, as shown by the uptick in OBV and RSI at press time.
Demand for Tezos in the Futures market spiked
The Futures market also mirrored the raging demand witnessed in the Spot market at the time of writing.
How much are 1,10,100 XTZs worth today?
According to Coinglass, Open Interest surged to >$30 million, a level last reached in February 2023. Besides, the Spot’s trading volume surged to +900% at press time, as per CoinMarketcap, underscoring the massive market participants.
However, a sharp BTC reversal and losses could complicate further bullish efforts. Hence, tracking the BTC price action is crucial.