Tezos blockchain has emerged as a good alternative in the world of smart contracts offering networks. Its cryptocurrency XTZ has moved up by over 400% in the last few days. Trending with a strong buying sentiment has helped XTZ breach multiple resistances, and we are now expecting it to make a fresh all-time high, breaching its previous records of $10.46 in the very year of its launch in 2018.
The market cap of Tezos is currently valued at $5.8 billion with a proceeding negative trend since last two weeks losing close to 26% of its value from the peak of $9.14. The cyclic price action, taking support from its long-term trend line ignited in purple, is the last level to be tested to ascertain the overall sentiment ruling this price trend.
Tezos Price Analysis
XTZ is under strong selling pressure from its recent high of above $9. This could be a broader profit booking, but there seems to be no weakness in this cryptocurrency network so far.
The year lows of 2021 have defended the earliest significantly stronger sell-off we have witnessed in May 2021. But since the uptrend movement in July 2021, there seems to be no stopping the swing rallies. With each pullback, XTZ price has returned with a ferocious pullback. As such, there is a higher probability of yet another short-term uptrend movement once XTZ retraces from the in-between levels of $6 to $7.
The value between $6.5 and $7 has acted as swing support, while RSI has also stopped in its tracks, refusing to go further below 47. Volumes, on average, have returned to the pre-August rally and seem stagnant. Any spike in green volume candles could indicate a possibly stronger price movement in the near term.
One can expect the 200 DMA to support any further fallback below the trend line levels for technical analysis. Currently, the 200 DMA is active at around $4.72 levels. According to our XTZ price prediction, buyers should take note of the Tezos trendline and 200 DMA before making any fresh entry into this cryptocurrency.