- Tezos breaks out of a sprawling canal as the cops target a new all-time high.
- XTZ has to close above $ 5 for the day, which can open the door to highs above $ 5.6.
- The TD Sequential indicator flashed a sell signal that is likely to invalidate the uptrend.
Tezos had danced within a range channel for the past two weeks, as shown on the four-hour chart. Last week’s dip included support at $ 3.8, giving way to the resumed uptrend. A break over the canal has confirmed XTZ’s bullish outlook.
Tezos in the hands of the cops again
Tezos is trading at $ 4.74 at the time of writing. The prevailing trend is massively bullish, which is reinforced by the Relative Strength Index (RSI) on the four-hour chart. This trend strength indicator has entered the overbought region and is unlikely to reverse in the near future.
XTZ / USD four hour chart
A rise above $ 5 would confirm the acceleration to a new all-time high. Note that the 50 Simple Moving Average (SMA) on the four-hour chart is above the 100 SMA and 200 SMA, which means the trend is favoring the bulls.
Look at the other side of the fence
The TD Sequential indicator flashed a sell signal on the four hour chart. The call for sale was manifested in a green candlestick. This signal shows that the bullish momentum may ease while sellers can take control.
XTZ / USD four hour chart
Note that if the sell signal is validated, Tezos will lose ground. A return to the area channel can also trigger more sales orders. On the downside, primary support of $ 3.8 is expected. However, the 50 SMA, 100 SMA, and 200 SMA are in concert to prevent a potentially massive free fall.
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