Tezos (XTZ) doubles in a week and is rising towards a new all-time high

The price of Tezos (XTZ) has more than doubled in the past week. The token is about to break the May all-time high of $ 8.42.

Tezos grows parabolically

Tezos hit the all-time high (ATH) of $ 8.42 on May 7, 2021. The altcoin then experienced a 75% correction to a macro low of $ 2.10 on July 20.

After a three-month consolidation in May-August, the token broke above the resistance area near $ 4 (green rectangle). It then hit the 0.618 Fib retracement of the entire bearish move, turning the $ 4 resistance into support on September 7th.

One day later, the price generated a hammer candle (blue arrow) to start a parabolic upward movement from September 9th. Over the past week, the price of XTZ has doubled, reaching $ 8 at press time.

XTZ chart from Tradingview

The breakout on September 9th and the subsequent upward movement is confirmed by the record volume. The altcoin then confirmed the aforementioned 0.618 fib retracement level as support and continues its upward move.

Technical indicators

Technical indicators on the daily timeframe support the ongoing breakout. The RSI has pulled back from neutral near 50 and is aggressively moving up. Currently, the indicator has regained a bullish area above 70 and is not creating a bearish divergence.

The MACD signal line has been positive since the beginning of August and is rising. The momentum bars are green again, indicating an increase in positive momentum. Additionally, the stochastic oscillator has returned to the bullish territory after a strong rebound from the bearish controlled limit.

XTZ chart from Tradingview

XTZ future movement

The next target for the XTZ price action is the ATH level at $ 8.42. However, even a daily close above the $ 7.58 area, which is the top of the body of the daily highest candle, would be a bullish signal.

The next goals are determined with the help of the external Fib retracement. Following a possible break in the ATH, XTZ will target the USD 10.14 and USD 11.04 levels at the 1.272 and 1.414 fib retracement levels. If these are broken, the next resistance levels are at $ 12.33 and $ 14.75, which is the external retracement of 1.618 and 2 Fib.

XTZ chart from Tradingview

The short term 4 hour chart shows an aggressively rising parallel channel. At the same time, we see a clear short-term resistance level around $ 6.20 that has been converted to support (green rectangle).

The price is currently close to the median of the channel, which has acted as a resistance since September 11th. Should XTZ manage to break this resistance line and validate it as support, the next few days could bring a new all-time high.

XTZ chart from Tradingview

Conversely, if the median is still viewed as resistance, the price will return to the channel’s support line, which is currently at $ 7. On the flip side, the above-mentioned $ 6.20 level serves as short-term support if a collapse occurs from the parallel channel.

For BeInCrypto’s previous Bitcoin (BTC) analysis, Click here.

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