Tezos (XTZ/USD) moved from a low of $5.3 on September 29 to an all-time high of $9.1 on October 4, in a clear uptrend of higher highs and higher lows. The prices are currently on a minor retracement. At the time of writing, XTZ/USD was trading at $7.6.

XTZ/USD shed 7.5% in the past 24 hours, which is still far from wiping out the 39.86% gains it made in the past week.

Still, the crypto market is riding on a bullish momentum with BTC, ETH and Binance Coin rising 3.51%, 2, 57% and 2.21% respectively, in the past 24 hours. In the past seven days, the three coins gained 23.13%, 22.43% and 30.02%, respectively. Will Tezos ride the bullish wave to claim new highs?

According to Zycrypto, Tezos has managed to scale up, thanks to its efficient open-source proof of stake system that has managed to roll out several upgrades seamlessly. Tezos is the most upgraded network in 2021, and the easy and less disruptive upgrade has attracted developers. The crypto’s latest Granada upgrade reduced transaction time by 120%, cutting down costs and energy consumption to almost 25% of the previous level.

XTZ/USD – A Daily Chart Outlook

Looking at the daily chart above, XTZ/USD breached the 7.5 resistance on October 3, before moving up to a new record high. It found resistance at the ATH of 9.1 before retracing. At the current level, prices could bounce off the imminent support of 7.5, before continuing the trend. If XTZ/USD breaks below 7.5, it could test the previous support level at 4.4. The XTZ/USD prices could also find another short-term support at 7.0, at a 50% retrace level. At the moment, there is no bullish price reversal signal to confirm a buy trade. 

XTZ/USD Trade Idea

Given the bullish momentum and the crypto sentiment overall, I maintain a strong bullish view of XTZ/USD. I would watch these three points for confirmation of the price action before going long.

7.5 – The prices could take a breather at this level before the upward trend continues. I view the level as the most likely price reversal point, as it is the immediate support. XTZ/USD is already testing this level, and I am keen to watch the price action behavior before entering a buy trade.

7.0 – The level coincides with a 50% retrace, since the strong bullish move from the 5.3-price level to the ATH. I would only do a buy entry once a bullish price reversal signal becomes apparent at this level with the confluence of the upward trend. 

4.4 – This is a much lower, but well-established support, where XTZ/USD could also settle in the current retracement. If I picked a buy trade at the support, my profit targets would be at 7, 7.5 or the all-time high of 9.1. Prices could still take a downtrend and even break the support, but with the technical and fundamental analysis aligning, XTZ/USD could find new highs. Good luck!