Disclaimer:Â The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Tezos saw its price hike by over 9 percent in the last 24 hours, with the crypto continuing to do so since the last week of March. However, a look at the altcoin’s price charts would reveal that XTZ has also moved sideways lately, forcing one to consider whether XTZ will have to deal with another short-term correction or not.
XTZ’s price, at the time of writing, was $7.12, with the cryptocurrency enjoying a market capitalization of over $5.4 billion.
Tezos 1-day chartÂ
Source: XTZ/USD, TradingView
While Tezos’ price action from the end of March has looked promising, the past week has seen a lot of its upward momentum stall thanks to the strong resistance level around $7.7. The coin has made multiple attempts to breach this level over the past few days, despite failing each time.
In the coming 24 hours, if the breach isn’t successful and the resistance isn’t flipped to a support level, then the coin may have to deal with renewed bearish pressure in the market.
The two support levels at $5.6 and $4.6 may be key for the coin in the coming week and it is hard to determine whether a short or a long position would work best given the current market scenario and the consolidation phase the coin had found itself in, at press time.
Rationale
The technical indicators looked promising in the short term. However, if one were to take into account past precedents, the RSI indicator which was in the overbought zone at press time, may drop to the 60-level and may set off a slight price correction.
The MACD indicator underwent a bullish crossover on 28 March, with a reversal looking very unlikely. In comparison to where the Signal line and the MACD line were at the start of the week, one can see that the Signal line had closed the gap and may attempt a move above the MACD line.
ConclusionÂ
Tezos’s price has performed rather well since the last week of March. However, the past few days have illustrated dwindling bullish momentum, forcing the coin to trade sideways. If the strong resistance level isn’t breached in the coming days, then a price dip may be expected and may push the coin towards the $5.6-price range.
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