Tezos recorded a decent performance over the previous month. XTZ and Bitcoin surged approximately 25% during July sessions, confirming two things. First and foremost, the somewhat positive correlation between BTC and most large-cap alts within the marketplace.
Secondly, it reflected the potential absence of conviction among Tezos bulls. Tezos only followed BTC’s lead in a month that saw Ethereum surging approximately 70%. However, could XTZ be awaiting another upside move?
Tezos 12Hr Timeframe
The 12hr chart shows XTZ formed several higher lows since mid-June. Also, the decline from April remained apparent. Meanwhile, XTZ exhibits an optimistic market structure after a break past the former resistance at $1.66. Nevertheless, that doesn’t imply XTZ would surge to its previous high yet.
The chart revealed two resistance levels at $1.92 and $2.14, and these hurdles could mean massive challenges for Tezos bulls. The RSI (Relative Strength Index) has hovered between 45 and 64 during July sessions. While publishing this post, the RSI stood at 62, beyond the neutral-50, suggesting upside trends for the altcoin.
Tezos 4Hr Timeframe
Analysts used June’s plunge to $1.195 from $2.36 to plot FIB retracement zones. The 38.2% mark matched $1.64, near the $1.66 horizontal zone of importance. Retracements past 38.2% would see actions into the 61.8% – 78.6% range. Generally, moving past 38.2% supports a move towards 61.8%.
That scenario would highlight the resistance level at $1.92. Again. The FIB retracement area boasted an impressive confluence with a horizontal mark. Also, the 78.6% retracement stood near the resistance at $2.15. Thus, a Bitcoin surge past $24.5K to $26K would see XTZ climbing towards these resistance regions.
Also, the 4hr chart’s Relative Strength Index exhibited a bullish outlook as the indicator surged beyond the neutral-50. Therefore, despite the bullish momentum. The trends were yet to favor Tezos buyers.
Moreover, the MACD climbed past the zero level within the last few days, confirming bullish intent. Moreover, the on-balance volume printed multiple higher lows within the previous month, highlighting a massive buying pressure.
The steady buying plus a move beyond $1.66 meant XTZ could witness another upside move. Meanwhile, BTC neared resistance around the $24.2K – $24.5K range and at $26K. Rejections at these hurdles would trigger a selling within the marketplace, potentially sending Tezos down.
Editorial credit: Piotr Swat / shutterstock.com