This Pattern Suggests Tezos (XTZ) is Now Gearing Up for an Explosive Move Higher
Tezos (XTZ) has been posting strong price action throughout the past several days, bucking the market-wide consolidation trend as its price stabilizes above $3.00
After facing some turbulence this past weekend alongside the rest of the market, the cryptocurrency has been slowly grinding higher, surging from lows of $2.80 that were set on Saturday to highs of $3.30 earlier today.
It did face some resistance at these highs, however, as it faced a slight rejection here that has sparked a short-term consolidation trend.
This strength comes as the cryptocurrency sees a massive influx of new open interest on Bitfinex that is overwhelmingly skewed in favor of long positions.
It is possible that XTZ will continue following in Chainlink’s footsteps and soon reclaim its 2020 highs of over $3.60 that were set in late-February.
Tezos Shows Signs of Strength as Analysts Eye Move to $4.00
At the time of writing, Tezos is trading up nearly 6% at its current price of $3.25. This is around the price at which the cryptocurrency has been hovering throughout the past several days and weeks.
It is important to note that although it has yet to recapture its pre-March meltdown highs, it is getting incredibly close.
These highs were set in late-February around $3.60, which is roughly 10% above where XTZ is currently trading at.
Whether or not it is able to surmount these highs could set the tone for its trends throughout the rest of the year.
One analyst does believe that a break above this level is imminent, as he notes that a continued bout of trading above $3.00 could catalyze enough momentum to send Tezos to $4.00.
He explained this path forward in a recent tweet, saying:
“XTZ: There we go. Support held and we’ve bounced upwards severely. Looking to see whether $3 and/or $3.12 holds. From there I assume we’ll be attacking $4.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Traders Widely Flip Long on XTZ as Momentum Builds
Retail traders are growing incredibly bullish on Tezos, as the cryptocurrency has seen a massive influx of new open interest on Bitfinex that is overwhelmingly comprised of long positions.
NewsBTC reported on this development yesterday, referencing one analyst’s comments in which he noted that 96% of Bitfinex traders are now long on the crypto.
“XTZ OI on Bitfinex is 96% long with longs at a mega new ATH. 70% of that long OI was added in late July.”
Image Courtesy of Josh Olszewicz. Chart via TradingView.
The inflows of buying pressure for Tezos on platforms like Bitfinex, coupled with a strong technical outlook, could provide it with some further momentum in the coming days and weeks.
Featured image from Unsplash. Charts from TradingView.