- Tezos shows buy signal for the first time in three months
- Tezos’ downward action has reached exhaustion after a 50% correction
- If history repeats itself, the price of XTZ could double in the coming months
Tezos News Today – despite the market-wide downturn from last month, the technical indicators for Tezos show an excellent opportunity for the coin. Several bullish patterns indicate that XTZ could potentially hit new ATHs. Tezos experienced a strong correction after it rose to a new ATH of $4.5 last month. XTZ’s price reached a low of $2.3 in August.
Despite the huge losses incurred, one technical index shows that the current bearish trend for the coin is set to reverse to a bullish pattern. The TD sequential indicator via the daily chart has presented a buy signal. The bullish formation came to light a red nine candlestick indicating the start of a new upward movement. A green two candlestick above the current one is a confirmation of the predicted bullish outlook.
Tezos’ Current Position Must not Be Neglected
Going by historical data, the TD sequential indicator has accurately predicted Tezos’ local bottoms in the past. Every single buy signal that this technical indicator has presented since the start of this year has been validated which has led to substantials gains for investors. Hence, the current forecast must not be neglected.
Rather it should be taken seriously no matter the level of uncertainty in the digital asset market. The 12-hour chart for XTZ/USD adds credence to this forecast that significant price improvement is underway for the token. During this period, the BB (Bollinger Bands) have been forced to squeeze. A good number of technical analysts regard squeezes as consolidation periods. They believe that these periods are usually succeeded by high volatility. Hence, the longer the squeeze, the more the breakout that follows it becomes violent.
The Position Between the Lower and Upper Bands a No-trade Zone
The inability of the Bollinger bands to offer a clear direction for Tezos’ price trend makes the position between the lower and upper bands a no-trade zone. The Fib retracement area holds a critical position of interest at the 78.6% Fib level along with side the recent price of $2.3 which is a swing low. Breaking the overhead resistance would validate the bullish opportunity displayed by the TD sequential indicator.
In such situations, the next critical resistance positions to watch include the 50% and 38.2% Fib areas. The hurdles mentioned here sit at $3.4 and $3.7. If demand is strong, the price of the coin could double, as it did in the past. A downward action that takes the price of XTZ below its recent low of $2.3 could cancel this optimistic position. It might cause investors to trigger panic selling. If this happens, Tezos price could drop to a low of $1.7 in the coming days.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
