Last week, Tezos made a breakthrough, surpassing Stellar to top the top 10 cryptocurrencies by market capitalization, as AZCoin News reported.
The XTZ price has increased by 165% since early November and 250% since the beginning of 2019. It is currently trading in a resistance area and is likely to near its peak.
When MATIC, a Binance IEO, dumped 70% in just a few hours last week, many expected Tezos to follow. The price started to decline initially but then quickly reversed and offset most of the losses.
Some fundamentals factors are believed to drive XTZ up.
- The first is the launch of Tezos Brazil, a group supported by the Foundation and dedicated to promoting the Tezos ecosystem in Brazil.
- Secondly, Ledger hardware wallet manufacturer has added support for Tezos staking on the Ledger Live app – allowing users to send or receive codes via smartphone or computer.
- Thirdly, the Kraken exchange also launched support for staking Tezos.
Trader Cactus claims that Tezos is at a critical point. If it moves up above the current resistance line, we can see the continuation of the move up. If it fails, the price may drop to a new low.
$XTZ probably not a good time to be following the fomo into Tezos, a lot of recent excited on this most recent pump but honestly we have seen this quick move up before.
Would be exciting if this longterm channel resistance gets broken and flipped into support but it’s a big IF. pic.twitter.com/UxXw3NNMJk
— Cactus (@TheCryptoCactus) December 9, 2019
Tezos price analysis
Tezos has risen straight to the $ 1.80 resistance level this week, which was subsequently declined and mitigated. The XTZ / USD pair is facing resistance in the resistance zone of $ 1.65 to $ 1.85. It is trying to find reliable support at around $ 1.65, allowing XTZ to bounce back higher. To expand the upward momentum, Tezos must rise above the $ 1.80 resistance level and surpass the 2019 high of $ 1.85.
The price has formed a Doji candle pattern this week, showing the indecision between the bulls and bears in the next direction.
Source: Trading View
If the bulls fail to push prices above the resistance, a fall to the 20-week EMA is possible. The bears have failed to break below the 20-week EMA since the beginning of November. Therefore, we expect a recovery from this level. If the price can climb above $ 1.85, it will be a huge positive. The next levels to watch on the upside are $ 2.87 and then $ 3.37.
Conversely, if the bears sink the price below the 20-week EMA, a drop to $ 0.82 is possible. This is a key support. Therefore, we anticipate the bulls to defend this level strongly. A break out of this support can slide to $ 1.85.
Elliott wave formation
The upward move, which began in November, started with a year-long bullish divergence in both the weekly MACD and RSI. Differences in such high time frames often indicate that a long-term reversal will occur.
Tezos price appears to be in the process of completing a five-wave Elliott model. It is currently ending its fifth wave, after which is usually the ABC retreat.
The RSI has formed a bearish divergence, but the MACD is not yet, indicating that this move can continue.
Source: Trading View
The bullish divergence in the RSI precedes the uptrend. The bull market will not end until the RSI trend is broken. The same thing happened in the bull market of 2018.
In the current movement, the support line of RSI is slowly falling. As long as it remains intact, the up move will continue.
Tezos price today. Source: Coinmarketcap
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Read more:
- IOTA Price Has Retreated To Potential Reversal Area
- Coinbase Has Become The Largest Validator For Tezos (XTZ)