Disclaimer: The info introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
Tezos [XTZ] has carried out decently effectively over the previous month. Both Bitcoin [BTC] and Tezos registered positive factors of round 25% in July. This highlighted two issues. One was the pretty optimistic correlation between Bitcoin and a lot of the bigger altcoins available in the market. The second was a potential lack of conviction amongst XTZ bulls. In a month when Ethereum [ETH] rose by 70%, Tezos was solely in a position to observe Bitcoin’s lead step for step. Could one other leg upward be pending for Tezos?
XTZ- 12-Hour Chart
On the 12-hour chart, the collection of upper lows that XTZ shaped from mid-June was seen. The downtrend from April was additionally obvious. XTZ has a bullish market construction after breaking above the $1.66 stage of former resistance. Yet, that doesn’t imply XTZ can climb again to the earlier highs simply but.
Two ranges of resistance at $1.92 and $2.15 had been highlighted on the chart, and it was probably these ranges would provide cussed opposition to XTZ bulls. The Relative Strength Index (RSI) has oscillated from 45 to 65 all through July. At the time of writing, the RSI was at 62 and above impartial 50 to counsel an upward pattern in progress.
XTZ- 4-Hour Chart
The drop from $2.36 to 1.195 in June was used to attract a set of Fibonacci retracement ranges (yellow). The 38.2% stage lay at $1.64, near the horizontal $1.66 stage of significance. A retracement previous the 38.2% stage can attain the 61.8%-78.6% pocket. Generally, a transfer previous the 38.2% stage does climb (or drop, primarily based on pattern) to the 61.8% stage.
In this case, that will be the $1.92 resistance stage. Once extra the Fibonacci retracement stage had good confluence with a horizontal stage, with the 78.6% retracement stage additionally near the $2.15 resistance.
Therefore, if Bitcoin can climb previous $24.5k to succeed in $26k, a transfer upward for XTZ to those resistance ranges will also be anticipated.
On the four-hour chart as effectively, the Relative Strength Index (RSI) had a bullish look to it because it climbed again above impartial 50. Yet, it may be noticed that over the previous few weeks the RSI has not stayed above impartial 50. Hence, though bullish momentum was on the playing cards, the pattern was not wholly in favor of the consumers.
The Moving Average Convergence Divergence (MACD) additionally surged above the zero line up to now few days, to underline bullish intent as soon as extra. The On-Balance Volume (OBV) additionally shaped a collection of upper lows up to now month to point out sturdy shopping for quantity.
The presence of sturdy shopping for, alongside the transfer above $1.66, meant that XTZ had the potential for an additional leg upward. Yet, Bitcoin approached some resistance at $24.2k-$24.5k, and in addition at $26k. Rejection on this space might result in a wave of promoting throughout the market, and Tezos might take a success as effectively.