Tezos Retreats After Touching an ATH – When Should You Buy?
Tezos (XTZ/USD) rose from a $5.3 low on 29 September to an ATH of $9.1 on 4 October. That came after the higher lows and higher highs. For now, the altcoins see a slight retracement. While writing this content, XTZ/USD trades at $7.6.
XTZ/USD lost 7.5% over the last 24 hours, which appears far from canceling the previous week’s 39.86% upsurge. Keep in mind that most tokens record brief corrections after considerable upticks.
Meanwhile, the crypto market sustains a bullish outlook, BTC (+3.51%), ETH (+2.57%), and BNB (+2.21) noted rises over the past day. Also, the three digital cryptocurrencies trade with double-digit percentage gains in the last seven days. Will XTZ revive its actions, following the broader market, to touch new peaks?
Zycrypto highlights that Tezos has scaled up. That is due to its reliable open-source PoS system that introduced multiple upgrades without hurdles. Keep in mind that the Tezos platform is the most upgraded ecosystem this year.
Moreover, its straightforward and less disruptive updates have attracted multiple developers. Its latest update Granada, condensed transaction duration by 120%. It also reduced electricity consumption by around 25% of its previous level.
XTZ/USD Daily Chart
According to the daily price chart, the pair broke the resistance at $7.5 on 3 October before surging to a new record peak. Meanwhile, the asset encountered resistance near its ATH at $9.1 before correcting. At its current price, XTZ might bounce from the $7.5 support before proceeding with the trend.
However, if the alt breaks under $7.5, it might test its previous support area at $4.4. Tezos might also secure near-term support around $7.0, or the 50% FIB retracement level. For now, the asset has no bullish reversal sign to authorize a buy trade.
As the market indicates bullish strength, analysts maintain a bullish stance for XTZ/USD. Here are the three price points that investors need to consider before placing long positions.
$7.5 – the asset might cool in this area before continuing an upside trend. It might act as a reversal point – immediate support. XTZ tests this area – Traders can consider this area before a buy trade.
$7.0 – this area coincides with 50% FIB retracement. It is ideal to buy trade after the price confirms a bullish reversal gesture.
$4.4 – though lower, it is dependable support where the alt might settle in its current correction. Anyone entering buy trades at this area can target $7, $7.5, or the ATH $9.1 as profit targets.
Prices might still plunge and even breach this support. However, fundamental and technical analysts suggest that XTZ/USD might secure new highs.