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Tezos Price Analysis: XTZ/USD set to hike to $5 soon

www.cryptopolitan.com 05 December 2021 10:29, UTC
Reading time: ~3 m

  • Tezos price analysis is bullish today.
  • XTZ/USD found support at $3.40.
  • XTZ/USD is currently trading at $4.056.

Today’s Tezos price analysis is bullish, owing to our expectation of further recovery later in the day. Since XTZ/USD was met with strong resistance at $3.40, we anticipate that there will be a comeback throughout the weekend. There is still a long way to go before XTZ/USD can break convincingly above the $4.50 handle, but we believe that this is a strong possibility in the days ahead.

Tezos price movement in the last 24 hours: Tezos rejects higher after a spike to $3.40

On the daily chart, we see that XTZ/USD found support at $3.40 on Thursday. This was a key level of support, as it coincided with both the 50-day moving average and the 0.618 Fibonacci retracement level from the all-time high of $6.87 reached on January 7th. As we approach the weekend, XTZ/USD is currently trading at $4.056, up 7% from Thursday’s low.

The volatility index (indicated by the black line) has climbed sharply since Thursday’s low, and we anticipate that it will continue to rise as we approach the weekend. Volatility tends to increase during weekends, especially when there is a lack of market-moving news.

We believe that XTZ/USD will find further support at $3.40 and head toward $4.50 later today. The price action seems to create a bullish flag pattern, which should also help advance prices above $4.50 in the coming days. That being said, if XTZ/USD fails to retake control above $3.75 soon, then it could be dragged down below our key near-term support levels of $3.

XTZ/USD 4-hour chart: XTZ starts to recover the previous loss

On the 4-hour chart, we can see the Tezos price action quickly pushing higher over the past hours, likely leading to a reversal over the next days.

XTZ/USD 4-hour chart. Source: TradingView

The price of Tezos has dropped steadily throughout the past weeks. A new major swing low was established at $4.27 at the end of November, representing a more than 50 percent retracement from the previous all-time high.

The market’s bullish momentum seized control on Monday, resulting in a recovery to $6 and a sturdy higher high. However, bulls could not keep the pressure up for long, triggering a gradual downturn throughout the week.

The XTZ/USD pair has been struggling to break the $4 mark for a few days now, and it appears that resistance is finally broken. The previous low was shattered overnight, setting up a new powerful swing low at $3.40. However, since then, we have witnessed a significant reaction higher, suggesting that there will be retracement over the next few days.

Tezos Price Analysis: Conclusion 

The price of Tezos is rising today, as we believe that the rally will continue after a sharp rise to $3.40. We anticipate traders to be weary following a strong reaction in XTZ/USD over the last hours.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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