Over the course of the past twenty-four hours, the price of Tezos has increased by more than nine percent, and this upward trend for the cryptocurrency has persisted since the final week of March. A look at the price charts of alternative cryptocurrencies, however, would reveal that XTZ has also moved sideways in recent times. This forces one to consider whether or not XTZ will have to deal with another short-term correction.
At the time of this writing, one XTZ token could be purchased for $7.12, and the cryptocurrency had a market capitalization of more than $5.4 billion.
The price action of Tezos since the end of March has appeared to be promising; however, over the course of the past week, a significant portion of its upward momentum has been halted due to the strong resistance level located around $7.7. In the past few days, the coin has engaged in a number of fruitless attempts to break through this barrier, but it continues to do so.
In the next twenty-four hours, if the breach is not successful and the level of resistance is not converted into a level of support, then the coin may be forced to contend with renewed bearish pressure in the market.
It is difficult 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 the time of publication. The two support levels at $5.6 and $4.6 may be key for the coin in the coming week.
Rationale
The short-term technical indicators gave a positive impression of the situation. However, if one were to take into account precedents from the past, the RSI indicator, which was in the overbought zone at the time of publication, may drop to the level of 60, which may cause a slight price correction to occur.
On March 28, the MACD indicator experienced a bullish crossover, and it appears highly unlikely that the trend will now reverse. One can see that the Signal line has closed the gap between itself and the MACD line when compared to where both lines were at the beginning of the week. This indicates that the Signal line may attempt to move above the MACD line.
Conclusion
Since the middle of the month of March, there has been a noticeable increase in the price of Tezos. Nevertheless, the most recent few days have shown diminishing bullish momentum, which has caused the coin to trade sideways. If the significant resistance level is not broken through in the next few days, then a price drop is likely to be anticipated, and the coin’s price may move toward the range that begins at $5.6.