After the recent general collapse, it seems that Tezos will resume its bullish trend to reach USD 5.74 per unit. This cryptocurrency has not made relevant profits but has kept pace with the general sentiment, reaching higher lows and highs.
A cryptocurrency that has least benefited from the current big bullish cycle of the market is Tezos (XTZ). An analysis indicates whether the cryptocurrency will be able to take advantage of new widespread gains.
Currently, XTZ is trading at around USD 3.50, accumulating a gain of 14.41% in the last 24 hours. A market capitalization of more than USD 2,916 million places it 45th in the cryptocurrency ecosystem.
Due to the long delays in launching the Tezos ICO, many of the initial investors were disappointed. When the token finally entered the market in July 2018, it wreaked on the price.
However, a massive sell-off of Tezos has allowed its price to recover slowly but steadily.
In principle, the Tezos network offers high energy efficiency and compatibility with smart contracts, such as Ethereum.
Although it has fulfilled its purpose, its adoption does not seem to have been as expected. For that reason, it has gained a very low position in the market ranking.
These Are the Trends of Tezos, According to a Technical Analysis
The daily price chart of Tezos shows a behavior very similar to that of a large part of the market. In other words, the token is moving sideways with some bullish tilt.
After the recent general collapse, Tezos and many other cryptocurrencies suffered slightly more losses. However, bears failed to reach a lower effective low, suggesting a possible bottom.
The bearish trend in the short term is still prevalent and could put immediate supports to the test again. However, the strong rejection of low prices seems to indicate that the larger trend may be exerting pressure.
It is more likely that there will be a bullish escape and a consequent resumption of that larger trend. To confirm that, the price of Tezos must break the resistance at USD 4.19, thus being free to reach USD 5.74.
Before that happens, there may still be some bearish lashes in the price of Tezos. If it loses the resistance at USD 3.43, it could quickly drop to USD 2.90, the most important level to hold in the short term.
This is the XTZ Price Forecast
The monthly chart shows a more complete view of the price action of Tezos. It is possible to note that the fall in May did not put a higher bullish intention at risk.
Although the cryptocurrency has not made substantial profits, it has kept pace with the general sentiment. It has been able to achieve higher lows and highs on the monthly chart.
The bearish candlestick of May managed to reach what looks like a higher low before continuing the trend. This direction could easily push the price toward the all-time high zone, close to USD 10.
The body of the May candlestick made support above USD 3.24, so the next push may already be under development.
Losing that level of support would lead to selling as high as USD 2.49. Below that is the level that keeps the bullish trend in the medium term, which is at USD 1.91.
By Alexander Salazar
