Disclaimer: The findings of the following analysis try to analyze the short-term impact of the price movement in Tezos’s market.
The fourteenth-largest coin on CoinMarketCap’s list, Tezos [XTZ] was reporting a market cap of $1.93 billion while being traded at $2.62, at press time. With a YTD of 96%, XTZ’s market has already exhibited its ability to bounce back from a period of sustained pressure. The same is evident right now, with XTZ having broken out of a bearish pattern, the price rise having already taken shape.
Source: XTZ/USD on TradingView
The attached 1-hour chart underlined the rise in XTZ’s price since 5 July, as a sudden boost paved XTZ’s way into the market. Since then, however, the value of Tezos had been contained between two upward sloping parallel lines. While the upper line connected the higher highs, the bottom line joined the higher lows. This channel noted the price to rise approximately from $2.28 to $2.702 with three days before the bearish pressure took over.
As the price failed to touch the upper line marking swing highs, there were signs of a price breakdown. Following the same, the price began to fall and fell to as low as $2.48 and according to the Fib Retracement tool, $2.5o was a strong support point.
However, looking at the historic nature of the market, the market was quick to recover from the fall. The price once again started to rise and surpassed the resistance at $2.588 and now was being traded at $2.60. The next resistance for XTZ lay at $2.69, a level which was last seen yesterday after which the price fell. This can be interpreted to be strong resistance for the coin.
According to the Chaikin Money Flow indicator, as the value of XTZ improved, the coin plowed ahead into the positive territory considered as the buying zone. However, once the price started to trend upwards, the coin was going closer to 0, indicating that the traders were selling the asset. At press time, as the price was increasing, the CMF was once again spiking towards the buying territory.
The next target for the XTZ price is $2.69. However, if the selling pressure increases, it may fall to $2.58.
