XTZ Escapes For A Bullish Pattern As Bulls Eye $1.5

Tezos (XTZ) has risen 27% over the last eight days from $1.0 to highs above $1.284 reached on Tuesday. This rally saw the Tezos price break above key resistance levels on the shorter timeframes. Moreover, the recent break out of a significant bullish technical formation points to a continuation of the ongoing uptrend.

At the time of writing, XTZ was exchanging hands at $1.283, up 4.255 on the day. Its 24-hour trading volume was also up 16.44% to approximately $28 million. With a live market capitalization of $1.18 billion, Tezos is ranked #51 on the CoinMarketCap list. 

Can Tezos Price Return To $1.5

XTZ price action between February 8 and 13 saw the token plummet 21%, creating a swing low at the $1.0 psychological level. This drop drove the token of the smart contracts blockchain below key levels including the 50-four-hour simple moving average (SMA) which coincided with the $1.15 psychological level, the 100 SMA at $1.13, and 200 SMA both sitting around $1.08.

Usually, asset prices tend to deviate from key support levels before reclaiming the zones to establish a launching pad. For the Tezos price, rising back above the SMAs has seen it return to February 8 levels at $1.26. This move, saw the altcoin complete the V-shaped chart pattern.

The four-hour chart below shows that XTZ escaped from the technical formation on Monday, confirming a bullish breakout. This clears the path for buyers to collect the liquidity above it before confronting resistance from a major supply zone sitting at $1.48. 

Above this, the next logical move would a be to climb to the$1.5 psychological level. This would represent a 16% rise from the current price.

XTZ/USD Four-hour Chart

Supporting the positive outlook for the Tezoos price were the up-facing moving averages (MAs) and the upward movement of the Moving Average Convergence Divergence (MACD) indicator above the neutral line in the positive region. This suggested that the market conditions favored the upside.

Note that XTZ’s upward traction will gain momentum once the bullish cross from the MAs is confirmed. Though not a “golden cross”, when the 50 SMA crosses above the 100 SMA, it usually indicates increasing buying pressure. When this happens, it provides the hindwinds required to scale the price higher.

Moreover, the Relative Strength Index (RSI) was pointing northwards. Its position at 74 in the overbought region implied that there was still more room for the upside.

Conversely, the same RSI painted overbought conditions for Tezos. This pointed to a possible correction in the near term. If this happens, the XTZ price may turn down from the current levels with the first line of defense emerging from the pattern’s neckline at $1.264. Breaching this level would trigger massive sell orders that could pull the price toward the $1.10 and $1.20 demand zone. 

Note that all the major MAs are currently lying within this zone. Therefore, it is a strong support region that could cushion the token from intense selling pressure. Traders could expect Tezos’s downside to be capped within this territory in the near term. 

Promising Alternatives To XTZ

XTZ looks strong at the moment but traders must be cautious as overbought conditions may kick in soon occasioning a correction. To avoid losing money on a possible bull trap, investors may wish to invest in new cryptos currently in presale with a low risk-reward ratio. 

One such token is METRO, the native token of the Metropoly ecosystem, the world’s first NFT marketplace for real estate backed by physical properties. This project brings new innovations to the real estate industry with its unique features such as fractional ownership, real-time analytics, and instant liquidity.

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