Tezos enthusiasts must have cherished their decision to hold this cryptocurrency as it managed to breach an important resistance level. XTZ cryptocurrency is unique because of its emphasis on security and governance. Three important features highlighted on their website is Institutional grade security using OCaml and Michelson languages to facilitate formal verification. Such languages have only been used in critical operations such as nuclear, aerospace, and others.
Holders of Tezos cryptocurrency have a say in the evaluation, proposal, and amendments which empowers users to contribute towards the progressive innovation on the Tezos crypto network. Tezos also engages the shortcoming of Bitcoin by using the more energy-efficient validation system of Proof of stake. It requires comparatively lesser energy and thus costs less to validate, making Tezos blockchain a more user-friendly crypto-network for developing eco-friendly blockchain applications.
After taking support from the immediate support levels, Tezos flew towards the moon in an attempt to retest it’s all-time high of $8.54 level. At present, the immediate and next target to watch out for will be $5.75.
Tezos Price Analysis
As per our last technical analysis of Tezos cryptocurrency on the 16th of August, where we predicted a strong upside move after breaching the highlighted resistance zone, the same happened. XTZ performed even better than our expectations as it marked a gain of over 45% in less than ten days. The price action and momentum followed by XTZ offer strong confidence in holding the crypto. Mixed candle patterns indicate subsequent profit booking and create an unlikely scenario of sudden and rapid profit booking. Tezos has resistance around $5.45 to $6.00 and strongly supports 200 DMA at $4.20 levels.
The most outstanding aspect of XTZ is the gains posted on the 25th of August 2021, which was possible only because of the substantially high volumes, almost twice as much as regular days. Over the last three or four days, XTZ has received more investor traction with increased volumes. But the huge gains warrant a scope for profit booking as none expected a single-day gain of 29%, that too on a closing basis. From an outside perspective, the price momentum is strong and is more likely to continue upwards. Any consolidation should happen above $6 to kick in fresh buying sentiment, leading to fresh all-time highs.
The MACD indicator has created a huge gap between the two moving averages, highlighting the possibility of the trend continuing. The bearish crossover at those levels would highlight the first sign of weakness. TEZOS also has strong support in the form of the 200 DMA at $4.20.
XTZ has a strong price action even on the hourly charts. It can be seen that it went upwards in back-to-back green candles posing consistent buying and what we are witnessing is a profit booking from fresh three months high levels. While the upside move had only green candles, the downside had a mixed bag of green candles in between, highlighting the possibility of XTZ trading with a positive sentiment.
On one side where the MACD indicator is re-affirming the profit booking, RSI has started to move back upwards, offering higher confidence that this rally will rebound towards higher levels. Bollinger bands indicate the overall sentiment and probability of a trend to continue. As long as the price is trading around the middle line indicated in dark yellow color, XTZ is in positive sentiment. Although as per our Tezos prediction, one should be extremely aware of making a fresh entry into this trending cryptocurrency.