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If Tezos price clears this significant hurdle, XTZ holders are in for a treat

Analytics

www.fxstreet.com 08 August 2022 08:25, UTC
  
Reading time: ~2 m

  • Tezos price is facing the 100-day EMA hurdle at $1.94, but clearing this blockade could result in handsome gins.
  • Investors can expect XTZ to retest the ascending triangle forecast at $2.16 and subsequently the 200-day EMA at $2.52.
  • A breakdown of the $1.67 support level will invalidate the bullish thesis.

Tezos price shows a steady grind toward its forecasted target. This development comes after a successful breakout from a bullish pattern. Investors can decide if they should hop on this train or stay away by looking at how XTZ reacts to an upcoming resistance level.

Tezos price faces a decisive moment

Tezos price produced four higher lows and three equal highs at $1.67 since June 18. Connecting these swing points using trend lines shows an ascending triangle formation that forecasts a 29% upswing to $2.16.

The target is determined by adding the distance between the first swing high and swing low to the breakout point at $1.66. On July 18, the altcoin seemed to break out but it was just a fake move. However, on July 28, the buyers stepped up and produced a successful breakout. 

Since then, Tezos price has rallied 14% to where it currently faces the 100-day Exponential Moving Average (EMA) at $1.94. If bulls manage to move above this level and flip it into a support floor, investors can hop in this up-only train for XTZ and ride it till the forecasted target at $2.16 or the next hurdle at $2.52, aka the 200-day EMA.

In total, this move would constitute a 32% ascent from the current position.

XTZ/USDT 1-day chart

XTZ/USDT 1-day chart

On the other hand, if Tezos price fails to move past the 100-day EMA at $1.94, it is likely to pull back to $1.72, where the 30-day and 50-day EMAs coincide. In such a case, investors have another opportunity to buy XTZ at a discount. 

However, a daily candlestick close below this confluence at $1.72 and the $1.67 support level will invalidate the bullish thesis for Tezos price. In some cases, this breakout could knock the altcoin down to $1.33.


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