Tezos flipped over 14%, surpassed Stellar to reach the top 10. What’s next?
Tezos has increased by nearly 250% since the beginning of 2019, making it one of the best performing cryptocurrencies in 2019. Meanwhile, XLM is one of the worst-performing tokens in 2019 along with XRP and Tron.
BlockHeadCap’s Matt Kaye commented that funds could soon abandon XLM to support XTZ. The strong operation of Tezos in 2019 comes after a difficult period of time caused by internal clutter in the project’s leading hierarchy.
Wonder if @Delphi_Digital spotted that in Tezos’ tokenomics…
— Matt Kaye ? (@MattDavidKaye) December 11, 2019
And without the expectation, Tezos did not follow Matic but instead tried to climb to the top 10 cryptocurrencies by market capitalization with more than 14% at the press time, according to data from CoinMarketCap.
Tezos’s market capitalization is currently at $ 1.6 billion, surpassing Cardano, its closest competitor, at around $ 300 million. Meanwhile, the gap between XTZ and Bitcoin SV is getting narrower, This shows that Tezos can easily climb to ninth place with another two-digit pump.
The main catalyst for this demonstration is obviously Kraken announced to add staking XTZ on December 11. Exchanges offer a 6% reward for those who choose their platform to store coins.
Technically, it seems that XTZ is about to withdraw before continuing the uptrend.
Tezos technical analysis
Over the past eight weeks, Tezos has increased by nearly 147% and recently reached a high of $ 1.84. The momentum of the exponential increase has caused it to rise above a rising flag that is forming from the beginning of the year.
The 360% protest that took place between March and May created the flagpole. And, the descending parallel channel that developed in mid-May formed the flag. Currently, XTZ is in the breakout phase of this bull formation, estimating a move to $ 2.42.This goal is determined by measuring the height of the flagpole.
Weekly XTZ / USD chart. Source: TradingView
Despite the prospect of the price hike, XTZ may soon find the point of motivation exhaustion based on the TD sequential indicator. This technical indicator is showing a sell signal in the form of nine red candles on the daily chart of Tezos.
The bearish signal estimates a correction to one from four candles or begins to count down a new downtrend. Trading of two red candles below an earlier red candle will confirm the bearish view.
Daily XTZ / USD chart. Source: TradingView
It is worth noting that Tezos is currently battling with significant resistance expressed as a 100% Fibonacci retracement. This resistance was able to prevent XTZ price as it did in May. And, combined with the sell signal from the TD sequential indicator, it can prevent Tezos from rising higher again.
The increase in selling pressure behind XTZ could push it down to test the support level given by the 78.6% Fibonacci retracement level at $ 1.52. A break below this level can trigger a subsequent sell-off that takes XTZ to the Fib 65% retracement level at $ 1.31.
On the contrary, a close above the 100% Fib retracement level could imply that the bullish momentum seen behind XTZ will continue to expand. The next supports are in the Fib 113% and 127.2% retracements respectively $ 2.05 and $ 2.27.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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