Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Tezos’s [XTZ] market has been seeing strong northbound momentum in the short-term. While a part of this growth could have been a result of Bitcoin’s market rally, the XTZ market seemed to be surging past the impetus given by Bitcoin. At the time of writing, XTZ was being traded at $ 3.04, a price level unseen since September 2020.
Tezos one-hour chart
Source: XTZUSD on TradingView
The attached chart noted the upwards rising price of XTZ. The recent ascending channel had narrowed on the charts, with the same registering a sharp rise in the price of the digital asset. Before reaching this price level, the value of XTZ bounced around the support at $2.7468.
However, following the latest surge in price, the market’s traders may want to wait for the opportunity for the price to stabilize before taking any action. On the contrary, the hodlers may want to continue to HODL.
Reasoning
The 50 moving average was observed to have ducked way under the candlesticks, an indication of the sudden and sharp rise in the price of XTZ. Although we may see a correction in the short-term coming, the market at press time seemed to be extremely bullish. This was also highlighted by the strong rising momentum on the Awesome Oscillator.
The AO has been noting a rise in momentum with the buying pressure increasing for a while now. The length of the bars determined the momentum in the market to be very strong at the given time. On the contrary, the Relative Strength Index also noted a quick journey from the equilibrium zone to the overbought zone.
As XTZ’s price hit the resistance level at $3.11, the RSI also topped. A falling price will underline the notion that traders are indeed selling the digital asset.
Conclusion
In light of the bullishness in the market at press time, XTZ’s value brushed against a resistance level on the charts. In all likelihood, the price might retrace in the short-term. It should be noted, however, that this won’t be more than a minor hiccup before XTZ really breaches this level.
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