- Tezos aiming to reach its all-time high again
- XTZ/USD pair maintaining parallel ascending channel
- Historically proven indicator presents another strong buy signal
For the first time in the course of three months, Tezos price action sets forth a vital buy signal which should result in a massive upside break. In defiance of August’s crypto market flip, technical indicators signal a superb buying opportunity for XTZ. Furthermore, some bullish patterns suggest that Tezos price might have the capability to reach a new all-time high.
Following the March coronavirus-triggered market decline, the XTZ/USD pair was trading beneath $0.98. However, the bulls managed to consolidate enough momentum to trigger a 300 percent upside rally towards the $4.5 price level a few months after the crash, recording a massive rise in trading volume and number of transactions.
Tezos price action prepared to recommence bullish momentum?
The XTZ/USD pair experienced a sharp correction after hitting a new ATH back in August. The value of Tezos depreciated by about 50 percent hitting a low of $2.3 after the correction. Nevertheless, regardless of the massive decline in Tezos price, a peculiar technical indicator implies the digital asset would soon switch red for green.
Tezos 3-day chart
The initial pattern to notice from the chart is an ascending parallel pattern in the Tezos price action in 2020. Notably, XTZ has been hovering within this ascending channel for most part of this year, having to bounce back from the bottom part of the channel multiple times.
At the moment, the XTZ/USD pair is protecting the 100- simple moving average(SMA) at $2.39 and a vital anchor point and the relative strength (RSI) near 40. During the pandemic-driven cryptocurrency market crash in March, the RSI level declined towards 39, from which the XTZ/USD pair recovered resolutely. An identical level was protected back on July 2.
TD sequential indicator presents third buy signal in 2020
Additionally, in the above chart 3-day chart, the TD sequential indicator presents traders with a buying signal. The initial buy signal presented by the indicator was formed on March 19, on the heels of the RSI touching 39. The subsequent second signal was created on July 5, and the third formed just the other day on September 12. Historically, the previous two buy signals this year have been validated, recording an average return of 84 percent.
Given the fact that the RSI is over long and TD indicator just signalled a buy signal, the XTZ/USD pair could be targeting to reach its all-time high of $4.5 once more, recording a 70 percent rise in value. Regardless of the degree of doubt in the market recently, traders should take the buy signal under serious consideration given the substantial gains recorded during the previous two occasions.
What to expect from XTZ/USD?
Although Tezos price action has presented a firm buy opportunity, the cryptocurrency is still facing vital challenges onwards. XTZ bulls have successfully created a couple of higher lows but still face vital resistance near $2.64. Tezos price action must clear this rejection to move further upwards.
Notably, if the bears can manage to exert more selling pressure at this critical resistance, it would be calamitous for the bulls and XTZ. Although there are several higher lows formed, there is no firm anchor point and the price of XTZ might sink back to the $2.3 lows.