Recently, the cryptocurrency Tezos (XTZ) has witnessed a substantial uptick in its price, joining the list of digital assets that are experiencing notable price increases. Over the last 24 hours, Tezos has surged by over 40%, marking a significant rise after a prolonged period and penetrating a crucial price threshold.
Tezos Price Breaks 8-Month Resistance Barrier
At the time of writing, Tezos was trading at $1.14, pulling back slightly from its peak of $1.24 during the day. This price level signifies the highest value Tezos has reached in eight months.
The price surge was activated by a breakthrough above the 200-day Simple Moving Average (SMA) at $0.75, indicating a revival in bullish momentum.
The Relative Strength Index (RSI) currently stands at 77.15, signaling an overbought condition that might lead to short-term profit-taking. Nevertheless, the Moving Average Convergence Divergence (MACD) histogram shows a bullish trend, hinting at a sustained upward momentum in the medium term.
By utilizing Fibonacci retracement levels, it is evident that resistance is present around the 4.236 Fib level at $1.15, which Tezos has struggled to convincingly surpass. Support levels are noticeable near the 2.618 Fib level at $0.93, offering a potential cushion for consolidation.
The Parabolic SAR also confirms the bullish trend, with indicators positioned below the price action. The notable surge in trading volume underlines the increasing interest of investors, but the continuation of this trend relies on overcoming resistance barriers.
Surge in Trading Volume Corresponds with Price Rally
Tezos’ trading volume has reflected its price upsurge, reaching significant milestones. Data from Santiment shows that XTZ’s trading volume escalated from around $60 million to over $500 million by the end of trading on November 18.
Currently, the trading volume has surpassed $870 million, marking its highest level since 2021.
This substantial rise in trading volume indicates heightened market activity and growing interest, reinforcing the positive sentiment surrounding Tezos.
Potential Targets and Risks for Tezos Coin
If the bullish momentum persists, Tezos could aim for resistance at $1.30, followed by $1.50, assuming there is ample buying pressure. However, failure to maintain support at $0.93 could trigger a retracement, with the 200-day SMA at $0.75 acting as a critical level.
A breach below this level could shift control back to the bears, with $0.60 becoming a significant focal point.
The overbought RSI underscores the risk of short-term selling pressure, while potential MACD divergence might indicate a weakening bullish trend.
For sustainable growth, trading volume levels must remain stable; any decrease could indicate market fatigue.
Tezos is currently at a crucial juncture. Its ability to sustain its bullish momentum or consolidate its gains will hinge on market sentiment, external circumstances, and the balance between supply and demand. Traders should stay alert for signals of the next significant movement.