XTZ Price Analysis: Token breaks above the trend line, what’s next?

The token is trading between its key Moving Averages.
The pair of XTZ/USDT is trading at the price level of $1.154 with a gain of 0.9% in the past 24 hours.

Tezos (XTZ) is trading below the demand zone on a daily time frame and has shown signs of bullish momentum in recent days. Tezos (XTZ) is a self-upgradable open-source blockchain platform for developing and hosting decentralized apps and assets.

XTZ token on the daily time frame

On the daily time frame, the token has broken above the long term trendline. According to the daily chart, the XTZ token is now trading at $1.154, up 0.9% in the last 24 hours. The token has crossed and sustained above the 50 EMA, and it is currently trading between its key Moving Averages, the 50 EMA and the 200 EMA. (Red line is 50 EMA and the blue line is 200 EMA). It remains to be seen whether the bullish momentum will be continued in the following days.

Relative Strength Index: The asset’s RSI curve is currently trading at 64.41, indicating that it is in the overbought zone. The recent rise in the token price has increased the value of the RSI curve. If the token continues to rise, the RSI curve will cross above the 14 SMA, indicating bullishness. As long as the bullish momentum continues, the RSI curve value is expected to be in the overbought zone.

Analyst view & Expectations

The token has shown upward momentum, but its overall trend remains bearish. To flip the trend in the bulls’ favor, the token must break above the demand zone and continue the bullish momentum. Investors are advised not to buy now and instead to wait for a clear indication before investing. Intraday traders, on the other hand, have a good opportunity to go short if the token forms strong bearish candles around the demand zone and book profits based on their risk-reward ratio.

According to our current Tezos price projection, the value of Tezos is expected to climb by 8.50% in the coming days, reaching $ 1.253865. Our technical indicators indicate that the current sentiment is Neutral, with the Fear & Greed Index reading 58. (Greed). Tezos had 22/30 (73%) green days with 12.63% price volatility in the previous 30 days. According to our Tezos prediction, now is not the time to buy Tezos.

Technical Levels

Major support: $1.055 & 50 EMA on the daily chart

Major resistance: $1.180 & 200 EMA on the daily chart

Conclusion

The token has shown bullish momentum in the past few days but we cannot say the trend has reversed and bulls have command of the trend. Investors are advised to wait for a clear indication before acting.

Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing