XTZ Technical Analysis
The Tezos (XTZ) community recently approved a new network upgrade with a huge participation rate of 70%. The aim of this upgrade is to increase the speed and scalability of smart contracts; this upgrade is also considered a major step towards institutional adoption. With the support of this huge news, the price of XTZ jumped swiftly and broke above the psychological level of $1, below which the coin had been trading for a very long period of time. Let’s analyze the potential scenarios technically.
Looking at the Tezos (XTZ) chart on a weekly timeframe, we see that the price of the coin has surged to the upper border of the falling wedge it has been trading within for long and has seen a rejection from there. This indicates that a strong sell pressure occurred at this key level where both technical resistance and MA200 are located.The price is under the great pressure of both the falling wedge and the resistance. While the $1.00 level stands as a key long-term resistance, the levels of $0.79 and $0.70 could be retested.
The coin is still trading within the falling wedge formation. This falling wedge pattern and the rejection from MA200 suggest that the rise of the price could be short-lived. However, if we see a break above the level of $1.10 with great momentum, then we can state that a trend reversal is possible.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
