Tezos looks to be on the verge of entering a new bull trend that will take it to new all-time highs.
Following this week’s crypto flash crash, market players are displaying signs of concern. Still, certain assets, like Tezos, are preparing to reach new all-time highs, indicating that the bull market may not be done.
Tezos may be on the verge of a new uptrend.
Tezos might be on the verge of a comeback.
Following the crypto market’s flash meltdown on September 7, the blockchain’s XTZ has made a strong rebound. Its value has risen approximately 80% from a low of $3.90 to a high of $6.90.
The current bullish impulse looks to have helped XTZ to break over the middle trendline of a parallel channel, where its price has been held since 2019.
Since then, every time Tezos has reached the channel’s top or central limit, it has been rejected, sending prices to the bottom edge. It tends to recover from this point, which is consistent with a channel’s feature.
The consolidation pattern on the three-day chart implies that XTZ might advance towards the upper limit at $12 as long as the channel’s intermediate trendline at $5.40 holds. However, failure to hold this important level as support might result in a sharp drop to the channel’s lower boundary at $3.
Tezos’ future becomes clearer when seen on a shorter time scale, such as the daily chart. According to the Tom DeMark (TD) Sequential indicator, the resistance setup trendline around $6.60 is serving as a stiff barrier, stopping XTZ from rising further, according to the Tom DeMark (TD) Sequential indicator.
As a result, only a strong daily candlestick close over this resistance level would likely signal the start of an 83 percent rally to $12.
In the case of a sell-off, there is a significant support cluster that might keep Tezos from breaking through the channel’s bottom limit.
The 200, 100, and 50-day moving averages, as well as the TD’s support setup trendline and the 23.6 percent Fibonacci retracement level, support the price range between $4 and $3. This significant demand barrier might act as a stopgap, preventing prices from dropping further.