- Tezos price has skyrocketed more than 9% over the past few days, taking the altcoin to $1.44.
- Despite the one-week green candles, XTZ is not showing excessive volatility, which is a good sign.
- Unless XTZ reclaims $1.6, its growth could stall, holding the altcoin closer to recent lows of $1.24.
Tezos price has been forming a bearish pattern for the past few months and continues to follow. This pattern is not good for investors as the price of XTZ will remain confined to the current resistance and support levels. However, if it breaks this resistance, the altcoin will invalidate a six-month downtrend line.
Tezos price is increasing
Tezos price surged 9.38% in seven days, resulting in the altcoin trading at $1.44. Most other cryptocurrencies like Dogecoin, Ethereum, etc. saw rallies in excess of 15%. As such, this relatively lower growth may not help Tezos reach its next critical target.
XTZ is currently testing a downtrend line for resistance and has been stuck below it for about six months. Prior to May’s crash, this trendline had acted as a support for the altcoin since September 2021, however, any attempt to break it has failed in recent months.
XTZ/USD 1 day chart
Going forward, the chances of breaching this line seem bleak as Tezos is not observing any major bullish signal. Bollinger Bands are currently converging, which means Tezos is not experiencing severe volatility. This will keep price volatility under control, which is usually a positive sign, but it could also prevent XTZ from seeing a bounce.
XTZ/USD 1 day chart
Furthermore, despite the recent 9% surge, Tezos price has failed to turn the 50-day (red) and 100-day (blue) Simple Moving Averages (SMA) into supports.
XTZ’s support system
The $1.24 swing low seen in mid-October is acting as the next crucial support level for the altcoin, which was last tested in June.
XTZ/USD 1 day chart
The recent bull market in the crypto market, when the total market cap reached almost $1 trillion, could prevent an excessive drawdown in the case of Tezos. But if there is a price hike, XTZ might have to wait a while longer.
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