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Tezos XTZ follows Chainlink to make new highs – but is $ 6 realistic now?

With Chainlink (LINK) hitting a new all-time high after an all-time high, a similar move can be expected at Tezos (XTZ). This is because these two coins have moved in parallel for the past few years and, despite the bear market for cryptocurrencies, were one of the few resilient digital tokens during this period.

Daily performance of the crypto market. Source: Coin360

Tezos actually showed strength as XTZ rose from $ 2.95 to as high as $ 4.50 in the past four days, resulting in a rally of more than 50%. But does Tezos have an even bigger rally ahead of them? Let’s look at the charts.

Tezos breaks clear resistance at $ 3.25 and rebounds to $ 4.45

As the graph shows, the price of Tezos broke the resistance zone at $ 3.25 and began to show impressive strength. The XTZ price rebounded from $ 3.25 to $ 4.50 in a matter of days.

XTZ / USDT 1-day chart

XTZ / USDT 1-day chart. Source: TradingView

When a cryptocurrency is in pricing, the easiest way to determine target zones is through the Fibonacci expansion indicator. It is ubiquitous in trading to measure these goals by defining the Fibonacci levels of 1.618 and 2.618.

A similar event occurred on the Tezos chart when the price broke through $ 3.25 and rebounded towards the 1.618 Fibonacci level after which it immediately moved to the next resistance zone at the 2.618 Fibonacci level. The price of Tezos then reversed, largely due to the withdrawal of Bitcoin (BTC).

Important support levels for XTZ

The 4 hour chart is clearly showing some areas of support to be aware of. As is well known, buying green candles does not guarantee further profits. Such a strategy is a very aggressive and emotional strategy in trading.

As measured in the chart, entering a trade via defined support zones is clearly the better approach.

XTZ / USDT 4 hour chart

XTZ / USDT 4 hour chart. Source: TradingView

For example, the 4-hour chart shows some critical support areas. Of course, the previous resistance at $ 3.25 is an obvious support area and mostly the best area for buying opportunity.

However, given this volatile movement, these zones are unlikely to be hit. In uptrend markets, the best support / resistance flips are generally not achieved as investors and traders are at the top at these levels.

As the graph shows, the next opportunity to look for support is in the USD 3.60-3.75 area that should generally be support in the lower time frames. From here the price is ready to consolidate in one area before further expansion occurs.

BTC pair breaks 100-day and 200-day moving averages

XTZ / BTC 1-day chart

XTZ / BTC 1-day chart. Source: TradingView

Tezos’ BTC pair shows a clear area-bound structure that caused the price of Tezos to fall back above the 100-day and 200-day moving averages (MAs).

In essence, the resistance zone at 0.0003700-0.0003800 sats was tested many times over the previous year. Retesting should most likely bring up an upside breakout.

The decisive support level to be maintained is defined in the green box. This area is confluent with a horizontal level of support while the 100-day and 200-day MAs serve as support.

As long as these MAs hold, further upward momentum is expected as the markets remain bullish.

XTZ price targets

With the Fibonacci extension tool, several course targets can be defined for XTZ.

XTZ / USDT 1-day chart

XTZ / USDT 1-day chart. Source: TradingView

The larger swing targets are classified around the $ 6 level. However, the chart also shows a target at the $ 5 level.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.

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