Tezos has been outperforming many of its larger counterparts throughout the past few days as XTZ journeys up towards $4.00.
This strong price action has allowed the cryptocurrency to hit fresh yearly highs late-yesterday, and its momentum isn’t showing signs of slowing down anytime soon.
The cryptocurrency is now on the cusp of shattering its $4.00 resistance, with a break above this level potentially being enough to lead it significantly higher.
One prominent analyst is now noting that XTZ likely won’t reach overbought territory until its price is trading within the $5.00 region.
If it can break through the resistance that sits within this price region, another trader is noting that Tezos’ ongoing upswing may extend as far as $7-8 in the weeks ahead.
This would mark a massive surge from its year-to-date lows of $1.30 that were set earlier in mid-March.
Tezos Posts Strong Price Action as Analysts Watch for a $4.00 Breakout
At the time of writing, Tezos is trading up just under 3% at its current price of $3.78. This is around where the cryptocurrency has been consolidating at ever since it faced a rejection at $3.90 yesterday evening.
The cryptocurrency’s ongoing uptrend has come about after the crypto plunged beneath its $3.00 support level earlier this week.
Buyers quickly stepped up and guarded against further downside, which is what sparked the uptrend that has since led it to fresh yearly highs.
As for where the cryptocurrency may trend next, one analyst is now floating the possibility that it will see significantly further upside before experiencing a pullback.
Josh Olszewicz – a well-respected trader – put forth this possibility in a tweet from yesterday evening, noting that a technical indicator suggests that it won’t reach “overbought territory” until it is trading at over $5.20.
This means that it may have room to run before it faces an influx of technical weakness.
“XTZ: (1-year MA)*2 suggests overbought territory at US$5.20+,” he explained.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
Trader: It’s “Very Plausible” XTZ Soon Races Towards $8.00
Another trader also echoed this bullish sentiment, explaining that $4.00 is the crucial level to watch in the near-term.
While speaking about this short-term resistance, the analyst noted that a break above $4.00 could be all that Tezos needs to see a parabolic surge up towards the $7-8 range.
“Very plausible we see some XTZ consolidation under $4, but if (when) we get over 4 I’m looking at the $7-$8 range.”
Image Courtesy of Jonny Moe. Chart via TradingView.
As long as Bitcoin remains stable and altcoins remain within firm uptrends, there’s a high likelihood that Tezos will be able to post significantly further upside in the coming few days and weeks.
Featured image from Unsplash. Charts from TradingView.
from NewsBTC https://www.newsbtc.com/2020/08/10/indicator-shows-tezos-xtz-may-rally-past-5-20-before-facing-resistance/
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