Tezos is a blockchain company that has slowly been building its reputation as a reliable and necessary technology in the industry. Known for its decentralized Tezos protocol and on-chain governance, the company was co-founded by Kathleen Breitman. Tezos Foundation’s latest partnership with ChainLink, to go alongside the other partners Cryptonomic SmartPy, is set to elevate the company even further. The Tezos ecosystem is growing, making use of smart contracts and proof of stake, to set themselves apart. As such, we have decided to create a technical analysis of their native token XTZ on how it relates to the crypto market.
Monthly Resistance XTZUSD Levels: 3.9400
Monthly Support XTZUSD Levels: 0.3200, 0.5479, 0.7500, 0.9930, 1.2008, 1.8476
Tezos XTZ vs. USD is clearly in a strong bullish trend from a monthly chart perspective, setting support zones on 01 January 2019, 01 October 2019, and 01 December 2019.
The support zones were established after a series of breach of bearish accumulation resistance levels.
Last months’ bullish price close confirms a continuation of the bullish trend following a bearish closing month (March), within the 01 December 2019 support zone.
Let’s move down to the lower time frames, and perhaps we may find lower zones to re-enter into the longer-term bullish trend.
Weekly Resistance XTZUSD Levels: 3.9400, 2.7603
Weekly Support XTZUSD Levels: 1.8800, 1.0100, 0.9930, 0.7610, 0.4451, 0.3125
A view from the weekly chart above shows the bullish signal after the first bullish closing candlestick within the 30 September 2019 support zone.
Next was a breakout of the 16 March 2020 support zone leading to a price increase into the 17 February 2020 resistance area after a hidden bullish divergence pattern on 06 April 2020.
Daily Resistance XTZUSD Levels: 3.9400, 3.3600
Daily Support XTZUSD Levels: 1.0100, 1.2279, 1.2802, 2.5600, 2.7919
A regular bearish divergence setup sent the XTZ price crashing after an opposing regular bullish divergence pattern signaled the price surge for about 190% on 05 January 2020.
A counter but wider range bullish divergence stopped the bears in their traps after entering the 05 January 2020 support zone, from where the bulls resumed control of the market.
Clearing above the MA-50 and MA-200 resistance areas, the bulls set new support on 27 April 2020, building up momentum to push the price into or beyond the 19 February 2020 resistance area.
Weekly Resistance XTZBTC Levels: 0.0004073
Weekly Support XTZBTC Levels: 0.0002880, 0.0002411, 0.0001478, 0.00000853
The above XTZBTC chart from a weekly perspective shows traders and investors favoring the XTZ over the BTC, as they reinforce their position after the pair flagged a hidden bullish divergence on 06 April 2020, confirming the support zone.
Traders should prepare to enter long on the XTZBTC as the bears push the price towards the support zone. We suggest going to the daily time frame for better entry back to the upside after the price enters the support zone.
Conclusion and Projection
Following the above analysis, we conclude that there is a massive demand for the Tezos XTZ pair compared to the USD. However, traders appear to flock towards the Bitcoin BTC for a short term period.
It’s a waiting game from here on the XTZBTC, and traders should prepare to jump into the upward trend as soon as the XTZBTC coincides with the MA-50 from a daily time frame.