- Tezos price moves beyond $3 and looking to establish support at the level
- Prices may see very high levels of instability as they approach unfamiliar levels beyond $3.1
- The trend is bullish at the moment.
Tezos is now accruing some gains after several weeks of trading below the critical resistance level at $3. Over the past few days, the top cryptocurrency has garnered a multiplicity of energetic bull runs which altogether propelled its price upwards to overcome a major hurdle at the $3 mark.
Now, as Tezos trades above $3, it is however conceivable that prices are looking to establish support above the area. If the buyers are able to push the movement further in their favor, Tezos might be on a rollercoaster to points unimaginable. The immediate level of resistance from here lies at $3.13, a point where Tezos haven’t touched since the beginning of the second quarter of 2020.
Although it is highly unlikely that prices make an easy escape through the resistance at $3, sellers may step in to deliver some difficulties. If selling pressure prevails, then, Tezos may fail the test at this resistance level.
At present, Tezos changes hands at $3.02 and has lost about 0.5% over the last hour. Its market capitalization has climbed to $2.15 billion and $113.89 million exchanged in volumes in the same time period.
XTZ/USD Technical Analysis
The XTZ/USD 1-hour chart shows selling pressure trying to stop the buyers from a total takeover above $3. If the sellers succeed, prices may fall towards $2.98 where the bulls should find major support. However, the struggle to gain dominance is evident as the one hour chart shows the formation of a shooting star which indicates potential continuation of the present bull run.
Beyond $3, there exist several layers of resistances that prices haven’t tested in a while. The best bet is that price instability will be intense at these points. This also indicates inbound days of sideways movement above the $3 support. If a breakout occurs above $3.07, then the bulls will look to establish new support at $3.1. Otherwise, sellers may drag prices back to $2.96, a point where major indecisiveness lies.
The Resistance Strength Indicator has just fallen steeply from the overbought condition. Now horizontal at 60, the bullish momentum seems intact. In this regard, buyers may push prices toward $3.1 in the near term while aiming to return to the 70.0 RSI level.
Market trend: Bullish
RSI level: 60.0