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Price Analysis

Tezos is at a 2-Month High, XTZ/USD Ranging above $2



Price Analysis - Tezos

The Tezos price remains choppy in the daily chart.

As of writing on Jan 8, the XTZ price is trading at $2.44, down double digits versus the BTC and down a ballpark seven percent against the USD and ETH on the last day of trading. However, the coin is up versus the USD in the last week of trading, adding 20 percent.

Overly, the trend is neutral, but with bullish hints from a top-down approach. For instance, the average daily trading volumes may be contracting but is decent at over $195 million.

This is when the circulating supply is over 660 million from the 763 million XTZ as total supply.

Tezos (XTZ) Price Overview

The XTZ/USD price is trading within a wider $1 range with caps at around $2.8 on the upside and $1.7 on the lower side. Presently, prices are reacting from the upper range, shrinking albeit with comparatively low trading volumes.

Even so, there is a double bar bearish reversal pattern with the XTZ/USD still oscillating inside the high-volume bull bar of Jan 6.

From an Effort versus Result (volume analysis), buyers stand a chance. However, bears have the upper hand as long as prices oscillate within the $1 range. A comprehensive bull bar spearing past $2.8 and Jan 6 high could trigger a FOMO wave as the XTZ/USD price break above the three-month squeeze towards $3.5.

On the lower end, if the crypto rally is ending, a contracting below key support trend lines in the weekly chart may cause a dump, a liquidation that may push XTZ/USD back below $1.75 to even $035—the 1.68 Fibonacci extension level of August 2020 trade range.

This will be the continuation of a bear trend pattern of August.

Tezos (XTZ) Market Overview

Supporters are confident of the project’s prospect, even comparing it to the early days of Ethereum.

Tezos is also a quality project and is ranked first of several metrics as per the below indicator:

On the development front, the test net of a new stablecoin on Tezos, Kalibri, is live. It is crypto-backed with a soft peg to the USD. This launch follows the release of the Harbinger, an oracle, in 2020.

Meanwhile, Misbah Capital, a Saudi Arabia-based Taibah Valley subsidiary, said they are joining the Tezos ecosystem as the official corporate baker (validator).

It is the first from the Middle East and has added Tezos to their blockchain lab project.

Tezos Price Prediction

Tezos is at a 2-Month High, XTZ/USD Ranging above $2

The XTZ/USD pair is trading at a one-month high. However, as mentioned earlier, it is mostly in range with caps at $2.8 with mixed signals.

For bulls to be in charge, a comprehensive high volume close above $2.8—preferably with above average volumes, could see the coin rally to $3.5. The weekly chart shows that prices are reacting positively from the main support trend line, albeit this week’s bar has a long upper wick signaling liquidation in lower time frames.

A confirmation of the upside, therefore, is important for traders.

In the lower time-frames, buyers are in control—and dips may be an opportunity for loading, as long as prices are above $2.3.

If bulls succeed, the first buy target will be at $3.5 or Sep 2020 highs. Conversely, losses may see the XTZ/USD price crater to $0.31, the 1.68 percent Fibonacci extension level of the Aug-September trade range.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!

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