As Chainlink (LINK) reaches one new historical record after another, a similar move would be expected in Tezos (XTZ). This is because these two currencies have moved together over the past few years and have been one of the few resilient digital tokens, despite the downturn in the crypto market during the period.
Tezos (XTZ) showed strength as it rose from $2.95 to $4.50 in the previous four days, resulting in a rebound of more than 50%. But is an even bigger rally being prepared for Tezos? Let’s review the charts.
Tezos breaks clear resistance at $3.25 and goes up to $4.45
As the graph shows, Bitcoin Code price broke the resistance zone at $3.25 and began to show impressive strength. The XTZ price rose from $3.25 to $4.50 in a matter of days.
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If a crypt currency is under price discovery, the easiest way to determine target zones is through the Fibonacci Extension Indicator. In trading, it is necessary to measure these targets by setting the Fibonacci levels of 1618 and 2618.
Something similar happened on the Tezos chart when the price broke above $3.25 and rose to the 1.618 Fibonacci level, after which it immediately continued to the next resistance zone at the 2.618 Fibonacci level. The price of Tezos then reversed, which can be attributed in large part to the retracement of Bitcoin (BTC).
Main XTZ Support Levels
The 4-hour chart clearly shows some support areas, which are crucial to observe. As is commonly known, buying green candles does not guarantee extra profits. This strategy is very aggressive and emotional during trading.
As measured on the chart, entering a trade through defined support zones is clearly a better approach.
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For example, the 4-hour chart shows some critical support areas. Of course, the above resistance of $3.25 is an obvious support zone and mainly the best area for any buying opportunity.
However, since there is such a volatile movement, it is unlikely that these areas will be affected. In the bullish markets, the best support/resistance changes will usually not be reached, as traders and investors move ahead of these levels.
As the chart shows, the next opportunity to look for support is the $3.60-3.75 area, which is generally expected to provide support in the shortest time frame. From here, the price is ready to consolidate into a range, before further expansion occurs.