Tezos May Show Positive Outlook If It Sustains the Current Trend!

Tezos has been a focused blockchain that is open-sourced and crafted in a method that allows it to evolve with the changing blockchain dynamics without depending on hard forks. Its growth-focused evolution with a higher dependency on Proof of Stake validation techniques will allow Tezos to advance in the smart contract domain. 

Any changes to the XTZ blockchain are made through Bakers’ proposal voting method, followed by a four-step procedure to update the blockchain, taking approximately 23 days. Tezos is standing at the 37th rank based on its $1,566,220,444 worth of market capitalization with close to 98% tokens under active circulation.

Tezos price action in the last three months has been slow and gradual upside movement followed by a cascading profit booking. May 2022 was supposed to be a one-time condition but was repeated in June with a significant decline.

While the transaction volume during this phase spiked and returned to normal levels, this price action could become repetitive. XTZ needs to overcome the previous rejection levels to avoid a negative outlook. Find more details about the future price projections of XTZ.

XTZ Price Chart

Tezos, having moved significantly from its June 18, 2022 lows, is indicating a high value of 56 on the RSI indicator. The value showcases a further upside movement towards overbought zones while the MACD indicator continues to hold its bullish crossover.

The longer it takes for MACD to create a new bullish crossover, the better and stronger the price reversal will be. At the same time, the regression trend indicates limited days for XTZ’s trade in the upper band while the majority of price action closed in the lower band. 

Trading at a decent premium to its support level, XTZ’s outlook could turn strongly positive with a further upside movement towards its immediate resistance of $2.26. $1.18 is the strong support level.

The positive outlook would severely be harmed in case of failing to maintain the price action in the upper band. In the last positive swing, profit booking took place after an upside movement. Increasing RSI with decreasing transaction volume indicates more buyers and fewer sellers. Tezos would require a higher transaction volume with growing RSI to bring in an upside rally with a breakout.

XTZ Price Analysis

Weekly Heiken-Ashi charts for the XTZ token indicate a clear upside and downside tendency of this token on historical price actions. In the present timeline, since tumbling from its all-time peaks in October 2021, Tezos has been riding a significant selling sentiment which has now begun to ease.

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RSI is also starting to move upwards but remains closer to the near-term support with positive volumes. Since the Tezos reversal hasn’t gained the strength it displayed in January and July 2021, the retracement could take a little more time. Support comes at $1.33, with resistance shifting towards a higher target of $4.16, creating an upside scenario.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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