Tezos (XTZ) may rise to $2.4 following a recovery rally
The price of Tezos (XTZ) has defied gravity amid a hazy May for cryptocurrencies. The currency seems to have a lot of upward push and will most likely post more gains over the coming days. Here are some of the highlights:
- Tezos (XTZ) has found strong support at $1.8, which is a key level to watch.
- The coin has managed to surge past the $2 resistance and is currently trading at $2.3.
- Building up around this price is happening right now.
- The price of XTZ is likely to rise above $2.4 before a substantial retreat occurs.
- Tezos (XTZ) is expected to report more gains shortly.
Is this a sustainable trend for XTZ?
The $2 level, on the other hand, is not a barrier to resistance. A rise above $2 is an indication that XTZ’s recovery might continue for a long period. If bulls can drive the price higher and remain there for several days, XTZ could climb by almost 50% in early June.
Furthermore, XTZ is entering its price rally at a time when the market has been experiencing a severe sell-off. The coin fell to $1.4 at one point, the lowest it had been in 2022.
But we’re currently witnessing an amazing recovery. XTZ has risen by around 50 percent from its lowest price this year.
And it looks to be on the verge of another 50 percent rebound. Nonetheless, this ongoing ascent indicates that XTZ is due for a downturn.
This is what we could see soon if Tezos manages to remain above $2.1 for a sustained period.
We do not anticipate this happening any time soon. In fact, before some dip buyers begin to pull out, XTZ will almost certainly surge past $2.5. However, the price must stay above $2 for this bullish setup to remain valid.
XTZ – In the short-term
There is still some short-term value for XTZ buyers right now. The currency is presently trading slightly above $2, which makes it an excellent entry point.
Tezos has already shown some good signs of a potential breakout with the formation of higher lows.
Purchasers who buy at this price have the option of keeping XTZ for a few days before selling it when the price reaches $2.4. However, if the currency fails to close above $2 on any given day, stay put for another consolidation stage.
At the time of writing, Tezos was changing hands at $2.11 after an over 5 percent surge in the last 24-hours. The market cap and 24-hour trading volume for the coin stand at $1.64 billion and $129.24 million, respectively.
The Tezos Foundation has been making headlines lately due to its work on Tezos’ smart contract platform.
The Foundation recently announced that it would be working with the Ethereum Foundation to improve Ethereum’s smart contract language, Solidity. Tezos is also working on its own smart contract language, Michelson.
The Tezos Foundation has also been in the news for its work on Tezos’ proof-of-stake consensus algorithm. The Foundation recently published a blog post detailing the new features that will be included in the upcoming Tezos’ protocol upgrade.
So, the current Tezos rally is mainly a result of bargain hunting and short-covering. However, the Tezos Foundation’s decision to sell part of its stake could put pressure on prices and lead to a sharp correction.
The Tezos Foundation sold about 20% of its total holdings in the first quarter of this year
All in all, Tezos looks poised for more upside in the near future. So, if you’re thinking of buying XTZ, now would be a good time to do so.