Tezos price analysis: Technical indicators suggest XTZ might surge towards $4.5

Sunday 20 September 2020, 12:38 AM AEST - 1 month ago

Tezos priceTezos price analysis: Technical indicators suggest XTZ might surge towards $4.5 19

  • Tezos aiming to reach its all-time high again
  • XTZ/USD pair maintaining parallel ascending channel
  • Historically proven indicator presents another strong buy signal

For the first time in the course of three months, Tezos price action sets forth a vital buy signal which should result in a massive upside break. In defiance of Augusts crypto market flip, technical indicators signal a superb buying opportunity for XTZ. Furthermore, some bullish patterns suggest that Tezos price might have the capability to reach a new all-time high.

Following the March coronavirus-triggered market decline, the XTZ/USD pair was trading beneath $0.98. However, the bulls managed to consolidate enough momentum to trigger a 300 percent upside rally towards the $4.5 price level a few months after the crash, recording a massive rise in trading volume and number of transactions.

Tezos price action prepared to recommence bullish momentum?

The XTZ/USD pair experienced a sharp correction after hitting a new ATH back in August. The value of Tezos depreciated by about 50 percent hitting a low of $2.3 after the correction. Nevertheless, regardless of the massive decline in Tezos price, a peculiar technical indicator implies the digital asset would soon switch red for green.

Tezos 3-day chart

The initial pattern to notice from the chart is an ascending parallel pattern in the Tezos price action in 2020. Notably, XTZ has been hovering within this ascending channel for most part of this year, having to bounce back from the bottom part of the channel multiple times.

At the moment, the XTZ/USD pair is protecting the 100- simple moving average(SMA) at $2.39 and a vital anchor point and the relative strength (RSI) near 40. During the pandemic-driven cryptocurrency market crash in March, the RSI level declined towards 39, from which the XTZ/USD p ...

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