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In the last few hours, Tezos breakout of a bearish trend it endured since mid-December 2019. Now, technical indicators show XTZ aiming for higher highs.
Tezos Technical Analysis
On Dec. 13, Tezos peaked at a high of $1.86. Since then, this cryptocurrency entered a corrective phase that saw its price decline by nearly 35%. XTZ went down to reach a low of $1.21 on Jan. 2.
Throughout the bearish trend, Tezos was contained within a descending parallel channel. Every time this crypto plunged to the bottom of the channel, it went up to hit the top, and from this point, it dropped again — primary characteristics of a channel.
On Jan. 6, however, XTZ finally broke out of the descending parallel channel. Although the bullish impulse was not followed by an increase in demand, the recent retest of the upper boundary of the channel seems to have triggered a spike in the buying pressure behind this coin.
Tezos surged nearly 12% in the last 25 hours. The upswing allowed it to make a higher high for the first time since the corrective period began in mid-December 2019.
Now, a golden cross formed on XTZ’s 12-hour chart signaling a further advance. This technical pattern developed as the 7-twelve-hour moving average crossed above the 30-twelve-hour moving average. Some of the most prominent technical analysts see this pattern as one of the most definitive buy signals that could start a new upward trend.
If Tezos is indeed bound for a bullish impulse, it could find strong resistance around the 38.2% Fibonacci retracement level, which sits at $1.44. Closing above this price hurdle could trigger an increase in buy orders. XTZ could climb up to the 23.6% Fibonacci retracement level at $1.60.
Nonetheless, a drop below the 50% Fibonacci retracement level could invalidate the bullish outlook. Such a bearish push could ignite a sell-off that takes this crypto to the $1.17 support area.
Overall Sentiment
The recent rally seen across most cryptocurrencies in the industry pushed the market sentiment out of the “fear” zone, according to the Crypto Fear and Greed Index. The change in perspective allowed many cryptos, including Tezos, to begin a new upward trend. As investors and sideliners begin to enter the market, the capital inflow could send XTZ into higher highs.