The super trend indicator suggests a buy signal for XTZ, with bulls struggling to break through horizontal resistance at $3.62.
XTZ is trading around $3.41, down 1.1% over the past 24 hours at the time of writing, according to data from CoinGecko. The value of the coin, however, is up 7% over the past week, with the price of Tezos still in an uptrend despite facing this downward pressure that has limited the upside over the past five days.
The crypto-currency’s price has bounced off the $3.62 mark twice this week. This means that the presence of the bears could lead to further consolidation within the narrow ascending channel.
But with Bitcoin and Ethereum in sight of new weekly highs above $46,000 and $3,200 respectively, a general rebound in the crypto-currency market could see XTZ’s buy signal strengthen over the next few days.
Tezos Price Analysis
The technical outlook for the wedge suggests a continuation of the uptrend, barring a clear breakout that would highlight a potential setup invalidation.
The RSI is holding a positive divergence above the equilibrium line, while the appearance of the green super-trend signal indicates an upward move towards the intraday highs.
This move could see the XTZ/USD pair break above the midline of the ascending channel, and if gains continue, buyers could turn their attention to the key resistance area marked by the 61.8% Fibonacci retracement level at $3.56 and the upper trendline of the channel.
If trading volume increases, the next target for XTZ/USD would be the continuation towards resistance at the 78.6% Fibonacci level ($3.97).
XTZ daily chart. Source: TradingView
On the other hand, a break below channel support and the 50% Fib level ($3.27) could prompt sellers to target a retest of the support line at $3.15. The 38.2% Fib level ($2.98) could offer temporary relief.
However, below this anchor, bulls will need to defend the 50 SMA ($2.86) to prevent further declines towards $2.36.