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XTZ Technical Analysis: Tezos Coin Escapes a Symmetrical Triangle Pattern with Bullish Breakout

cryptoknowmics.com 04 January 2022 12:14, UTC
Reading time: ~2 m

The XTZ coin price action is preparing to move out from the consolidation trap, triggering a new rally with New Year.

Tezos is a blockchain network that is based on smart contracts in a manner that's not much different from Ethereum. But there's a major distinction: Tezos aims to offer an infrastructure that's more sophisticated, can grow, and improve in the future without the risk of an unintended fork ever. Users who own XTZ can cast votes on proposed changes for protocol enhancements that were put forward from Tezos developers.

Let us move ahead to read about Tezos technical analysis.

Past Performance of XTZ

The correction phase, initiated in October 2021, plunged the Tezos coin price to the 0.786 Fibonacci retracement level, indicating a 64% drop in value. The coin is still consolidating near this lower level, preparing for its next breakthrough. The price has increased by more than 22% in the past week. 

XTZ/USD Daily Chart

XTZ Technical Analysis

For the past month, the XTZ coin price action has been resonating in a symmetrical triangle pattern. Today, the price has finally managed to show a proper breakout from the resistance trendline, along with the 200-day EMA, indicating an upcoming rally in this coin.

The RSI indicator at 57% has an impressive recovery from the oversold territory, which has recently hopped above the middle line (50).

The MACD indicator shows the fast and slow lines are on the verge of crossing above the neutral zone (0.00), providing an extra confirmation for the bullish breakout.

The following resistance levels are at $6 and $7.5, respectively, which can push the bullish breakout and halt the uptrend. And, on the opposite end, support levels are at $3.75 and $3.

Upcoming Trend

The XTZ still needs to provide a daily candle closing above the descending trendline to confirm its breakout. Once the price shows sufficient sustainability in the retest phase, the crypto traders could grab an excellent long entry opportunity.

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