Tezos on Tuesday appreciated 12 percent against the US Dollar, recovering from the long bearish correction from September 10.
XTZ/USD opened today while trading at 1.270-fiat on Gate.io exchange. The pair continued its corrective phase in the early Asian trading hours and formed lower lows towards 1.256. As the session matured, bulls and bears were already fighting for the trend crown, giving us volatile price action between the range defined by 1.315-fiat to the upside and 1.255-fiat to the downside. It was at the beginning of the European session bulls began to regain control, and successfully broke above 1.315 -fiat to form higher highs towards 1.359-fiat.
As of now, XTZ/USD is trending upwards inside a rising parallel channel on a 15-minute timeframe. The pair is trading above its 50H, 100H, and 200H SMAs, while the RSI indicator is moving towards the strong buying area. It is possible for XTZ/USD to continue its upside correction towards the channel resistance, giving day traders a decent long opportunity. From there, the pair could attempt a near-term pullback towards the 38.2% Fibonacci retracement of the last swing from 1.539-high to 1.237-low. There also can be a breakout scenario, in which price breaks above the channel resistance and make a move towards our intraday high near circa 1.388-fiat.
In the event of a reversal, XTZ/USD is looking for a pullback action towards 1.308-fiat before testing the channel support for a potential bounce back. If the bounce back takes place, we are looking for an extended position towards 1.352-fiat while keeping a stop loss a few points below the entry position. A breakdown from channel support, meanwhile, could open the way towards 1.237-fiat in near-term.
Market Factors behind Tezos Value Surge
Tezos has reportedly been taking Ethereum’s current weakness for granted, being a similar DAPP and Smart Contracts project. The company’s CEO Kathleen Breitman recent said in an interview that they are entering the video gaming industry.
“The reason I’m focusing on online video games is primarily [that] the users of these games tend to have the right profile for adopting new digital paradigms,” she told Fortune, after which the XTZ/USD value shot through the troposphere – rising 29% within few hours.
To say the coin could surge any further is arguable. Institutionalized assets in the recent past have shown extreme gains owing to strong fundamentals. However, all of them have also dropped by huge margins after the hype dried. Tezos somewhat has already experienced a bearish reversal around its monthly high. But today’s bullish reversal is reviving hopes for an extended bull run on charts of longer timeframes.
CCN will continue to monitor XTZ/USD charts for more updates.
Featured image from Shutterstock. Charts from TradingView.