Tezos (XTZ) Price Increases 85% in November — Rally May Not be Over

Key Takeaways

• Tezos (XTZ) reached the $1.25 horizontal resistance area.
• XTZ broke out from a descending resistance trend line.
• Will Tezos maintain its momentum and close above $1.25?

The Tezos price did not perform well in the first three quarters 2024. XTZ fell to a low of $0.58 on Nov. 4, a decline of 43% since the start of the year. The decrease was important since the price fell below its 2023 lows, which most cryptocurrency markets had not done then.

Nevertheless, XTZ regained its footing and has increased by 100% since Nov. 4, coming very close to its yearly high of $1.59 before being rejected. This leads to the question: Will XTZ reach a new yearly high, and what’s the next target if it does? Let’s find out.

XTZ Reaches Resistance

The weekly time frame XTZ chart shows that the price creates the third consecutive bullish weekly candlestick. The rally started after the price formed a triple bottom pattern (white icons) near $0.60.

On Nov. 18, the XTZ price reached a high of $1.40 before falling, creating a long upper wick (black icon). The wick validated the $1.25 horizontal resistance area. The area is critical since it has existed since 2022 and is the final resistance until $4.

Technical indicators legitimize the increase. The Relative Strength Index (RSI) and Moving Average ConvergenceDivergence (MACD) generated bullish divergences (green) before the upward movement. They are increasing and above the bullish thresholds at 50 and 0, respectively. The MACD has also made a bullish cross.

So, the weekly time frame readings are bullish, predicting that XTZ will break out from the area and gradually increase toward $4.05.

Tezos Crypto Sentiment

XTZ crypto news last week was positive. Firstly, Coinbase added XTZ  to its top 50 index, a new global benchmark that tracks the top 50 digital assets that Coinbase believes are the core of crypto’s growth potential. Everstake also announced  that it will be possible to stake XTZ with a 13.3% APR.

Messari’s Q3 report  noted a 46% increase in activity with 8.6 million transactions, driven by Etherelink adoption. Etherelink alone recorded a 272% activity surge, while the validator stake reached a yearly high of 136 million XTZ.

Analysts are more cautious since Crypto Tony  said  he is waiting for the price to clear the aforementioned long-term resistance at $1.25 before entering. Let’s look at the wave count and see if XTZ will likely break out.

What’s Next?

The weekly time frame XTZ wave count shows that the price has completed a five-wave increase starting in 2019, where wave five developed into an ending diagonal. Then, the price completed an A-B-C structure (black), which, while unusual because of the length of wave C, is still valid.

If the count is accurate, the price of XTZ has started a new five-wave increase, which will be at least the same length as the previous one. This would lead to a high of $16.18, which would be a new all-time high.

However, the count has not yet been verified since the XTZ price has numerous resistance levels to clear before confirming it. The XTZ price is well below the 0.382 Fibonacci retracement resistance level at $3.86, meaning the ongoing increase could still be corrective.

As for the short-term movement, the increase looks impulsive because the XTZ price has broken out from an ascending parallel channel. So, per the wave count, XTZ is likely in the third wave of its five-wave increase.

Wave three may have ended since it was 2.61 times longer than wave one and took the XTZ price to resistance. The daily RSI is also overbought, though it has not generated any bearish divergence. So, the price of Tezos could complete a corrective wave four before eventually breaking out.

Therefore, while the XTZ price will likely break out above the $1.25 resistance and move toward $3.86-$4, it is still unclear if it will increase toward its all-time high.

XTZ Price Breakout Ahead

The weekly time frame price action and wave count suggest that XTZ has started a bullish trend reversal.

While it is unclear if this will lead to a new all-time high, XTZ will likely break out above $1.25 and increase toward $3.86-$4. A short

-term decline could happen before the breakout.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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