Tezos: Price Recovery In The Works?
Crypto Briefing | Nov 04, 2020 12:22AM ET
Tezos is flashing a number of buy signals that may allow it to recover lost ground. While investors struggle to make heads or tails of the U.S. Presidential elections, Tezos is quietly printing bullish tape. Tezos has been one of the main victims of the crypto market’s recent bloodbath.
The smart contracts token saw its price plunge nearly 60% over the past three months, dropping from an all-time high of $4.5 to hit a low of $1.8 recently.
Despite the massive losses, however, it appears that the token is on its way to greener pastures.
The TD Sequential indicator presented a buy signal in the form of a green nine candlestick on XTZ’s daily chart. The bullish formation forecasts that an increase in buying pressure may lead to a one-to-four daily candlesticks surge or the beginning of a new upward countdown.
Moreover, a bullish divergence developed within the same time frame between Tezos’ price and the Relative Strength Index. This technical pattern was created as prices began making a series of lower lows while the RSI made higher lows.
Such market behavior indicates that this token’s three-month downtrend is approaching exhaustion.
By measuring the Fibonacci retracement index from mid-March’s low of $0.93 to the recent all-time high of $4.5, multiple targets can be defined.
Based on this technical indicator, a spike in buy orders around the current price levels could push Tezos to $2.3. But if the buying pressure is strong enough, prices may advance towards the next critical area of resistance, around $2.7.
Get The News You Want
Though indicators suggest that Tezos is ready to rebound, the 23.6% Fib must hold to validate the bullish outlook.
Failing to do so will likely lead to continued losses as there are few significant support barriers underneath the $1.8 hurdle. Indeed, the next areas of interest sit at $1.5 and $1.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.