The super trend indicator suggests a buy signal for XTZ, with bulls battling to break above horizontal resistance at $3.62
XTZ is trading around $3.41, down 1.1% in the last 24 hours as of writing, data from CoinGecko shows. The coin’s value, however, is 7% up this past week, with Tezos price still in an uptrend despite facing this downward pressure that has restricted bulls over the past five days.
The cryptocurrency’s price has bounced down from the $3.62 hurdle on two occasions this week. This has meant that bear presence might lead to further consolidation within the narrow rising channel.
But with Bitcoin and Ethereum eyeing new weekly highs above $46,000 and $3,200 respectively, an overall bounce for the crypto market could see XTZ’s buy signal strengthen over the next few days.
Tezos price analysis
The technical outlook for the coin suggests a continuation of the uptrend unless there is a clear breakdown that will highlight a potential invalidation of the setup.
The RSI retains a positive divergence above the equilibrium line, while the appearance of the green Super Trend signal points to an upward move towards the intraday highs.
This move could see XTZ/USD climb above the middle line of the ascending channel, with further gains likely to see buyers eye the key resistance zone marked by the 61.8% Fibonacci retracement level at $3.56 and the channel’s upper trendline.
If trading volume picks up, the next objective for XTZ/USD would be continuation towards resistance at the 78.6% Fibonacci level ($3.97).
XTZ daily chart. Source: TradingView
On the flip side, breaking below the channel support and the 50% Fib level ($3.27) could spur sellers to target a retest of the support line at $3.15. The 38.2% Fibonacci level ($2.98) might offer temporary relief.
However, below this anchor, bulls will have to defend the 50 SMA ($2.86) to prevent further declines towards $2.36.