The popularity of the Tezos (XTZ) altcoin burgeoned in 2019, with high-flying listings on Coinbase and OKEx, and in March on Binance US. That last listing was ill-timed, coming during the absolute collapse of cryptoassets after COVID-19 struck.
$XTZ looking to breach the $3 resistance.
Ignition level. pic.twitter.com/sd2XfVyIKZ
— Crypto Rand (@crypto_rand) June 2, 2020
But since that collapse, Tezos has trebled in price and recovered powerfully—and now, after another surge this week, we may be seeing a bullish pattern setting up to breach $4.
We look at the weekly chart below, and first note the breakout that has come already during this first week of June. We saw volume last week, also a healthy week, rise slightly versus the previous week, setting a cautious uptrend (on Kraken).
However, we should also direct our attention to the February-March price action for Tezos. From the weekly chart, the formation strongly resembles an A-B-C pattern: a corrective pattern within Elliott Wave theory. Corrective moves are preceded and followed by impulse waves.
Impulse waves—price movements in the direction of the large trend—move in the opposite direction as corrective waves. This means that Tezos, following the corrective move down (red), could be moving now within an impulse wave (blue) to the upside.
If that is the case, we are likely to see some resistance between $3.50 and $4, where Tezos’ all-time high price zone sits.
Even if we do see a failure around $3.50, and thus a refutation of this impulse wave theory, we still are likely to see the approximately 14% further upside on the present movement.
In any case, we are going to need to see more volume coming in to continue the upward movement, this week.
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