XTZ in a Bullish Breakout Pattern, is $3.5 next?

The Tezos price is stable on the last trading day but with bearish undertones.

Despite hints of recovery, a confirmation of last week’s gains will only make sense if XTZ prices print higher highs from spot rates.

At the time of writing,  the XTZ price is down seven percent in the last week of trading but stable on the last day.

Tezos (XTZ) Price Overview

Trading at $2.44, XTZ prices are in range mode in the daily chart.

While there are a series of higher highs in the daily chart along the middle BB, the immediate price trajectory remains indeterminate despite last week’s bullish breakout.

For now, key reaction levels stand at $2.70 on the upside and $2.2 on the downside as the middle BB (the 20-day moving average) acts as flexible support.

In the medium term, ideal buy targets stand at $3.4 (Sep 1 highs) and $4.5 marking Aug 2020 highs.

On the flip side, losses below $2 could spark a dump towards $1.75 (Nov 2020 lows) and even March 2020 lows of $1.

Tezos (XTZ) Market Movers

Tezos is a self-amending smart contracting platform with specific interest from the French.

In the last few months, not only have there been comments from the head of the country’s central banks about plans of using Tezos but also their security agencies are interested in the network’s technology.

Also, the Societe Generale-Forge, a tech startup by the Societe Generale, a French investment bank chose Tezos for its CBDC experiment as part of the Banque de France trials of the digital Euro in September.

In collaboration with Nomadic Labs—one of the leading development firms for Tezos, the investment bank would use the Tezos. They cite the network’s superior on-chain governance, deployment of audited smart contracts, and their consensus algorithm.

#Tezos selected by @SocieteGenerale -Forge for its Central Banking Digital Currency experiment. Nomadic Labs is proud to contribute to this project. More info below:https://t.co/gpblNTYzVX

— Nomadic Labs (@LabosNomades) September 15, 2020

Nomadic Labs, Marigold, and Metastate also plan to introduce a privacy feature, feature, in addition to a ticketing system in their next upgrade, Edo. This upgrade is a few weeks after the activation of Delphi on Nov 12. Specifically, Edo will introduce Sapling, a privacy feature used by Zcash.

Typically, Sapling shields transactions. In Tezos’ case, it shall be integrated into smart contracts and privacy-centric dApps.

📣 Edo protocol proposal has been released! Major improvements proposed include Sapling, Tickets & governance 5th period. Read the full announcement here https://t.co/sRYob8qfTV #Edo #Tezos #blockchain

— Nomadic Labs (@LabosNomades) November 30, 2020

Tezos Price Prediction

The Tezos price is trading within a bullish breakout pattern. Even though bulls are struggling at spot prices, the fact that prices didn’t slide below $2 and $1.75 in the daily chart points to support and high momentum.

Moreover, there has been no confirmation of the three-bar bear reversal pattern of Nov 24 through to Nov 26.

On those three days, there was a firm close above the upper BB (Nov 24 and 25) complete with an inverted hammer with subsequent correction of the over-valuation on Nov 26. However, it is the lack of follow-through that points to bulls.

As it is, traders can wait for bullish signals in lower time frames. Volatility is increasing as the Bollinger Bands are beginning to widen at the back of high participation levels.

Losses below the 20-day and the support trend line to $1.75 invalidate the bullish breakout pattern of Nov 21 to Nov 23. In that case, bears should aim at $1—or March 2020 lows.

Conversely, higher highs above $2.7 to $3 open up bulls to $3.5 and even Aug 2020 highs of $4.5.

Chart courtesy of Trading View

Disclaimer:   Opinions expressed in this Tezos price prediction article are not investment advice. Do your research.