Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Tezos has been on a healthy uptrend since late December. However, it is one of the market’s large-cap altcoins whose gains over the past few weeks have not matched some of the more outstanding gains of other alts. While a lack of investor interest in a bull market is a worrying sign, an analysis would suggest that bulls were in the driving seat in the Tezos market.
Tezos 12-hour chart
Source: XTZ/USD on TradingView
The healthy uptrend of Tezos over the past month was captured by the ascending channel (yellow) that XTZ formed on the 12-hour charts. Of particular significance over the same timeframe was XTZ’s breakout beyond the range from $1.9 to $2.42, one that XTZ was trading within.
This breakout projected a target of $3 for XTZ bulls to achieve, with the bulls able to steer the crypto’s price past this target as well.
On the agenda of Tezos’ buyers would be the defense of the $3-region from bearish pressure over the next few days. A successful defense, if followed by a move north, will see XTZ set itself a target of $3.58 over the next two weeks.
Reasoning
The OBV has been on a gradual downtrend since August. The past few weeks saw buyers put a decisive end to that trend. Strong buying volume was seen for XTZ, something that legitimizes its recent rally.
The RSI climbed above 50 about a month ago, with the same staying above the level to indicate that an uptrend was in progress. The price action also reflected this as it moved within the ascending channel.
Important levels to watch out for
The $2.95-$3 region, highlighted, seemed to be of particular importance for the market’s bulls to defend over the next few days. Moving under this region and registering a session close under the ascending channel will signal a possible price drop for XTZ. This could see it retrace most of the gains made in recent weeks.
Hence, the lower boundary of the channel seemed to be an area of interest to both the bears and the bulls.
Other levels of interest included the $3.23-level of resistance and the mid-point of the channel, both of which can also be expected to act as dynamic levels of resistance.
Conclusion
Defending the $2.95-$3 region from bearish pressure will likely set up XTZ to make further gains over the coming weeks.
