Tezos Aims For Higher Highs After It Left The Corrective Phase

Tezos aims for new highs after it broke out of the bearish trend from mid-December and now the technical indicators show that XTZ is prepared to surge as we are looking into the charts in our Tezos news today.

Back in December, Tezos peaked at a high of $1.86 and the cryptocurrency has been in a corrective phase that it saw the price decline by nearly 35 percent and continued down reaching a low of $1.21 on January 2^nd. Over the bearish trend, Tezos was contained within a descending parallel channel and each time that the crypto plunged to the bottom of the channel, it aimed to hit the top and from that point, it dropped again.

However, just a few days ago, XTZ finally broke out of the descending parallel channel and now Tezos aims for higher highs although the bullish impulse was not followed by the slight increase in demand. The recent retests of the upper resistance level of the channel seem to have initiated a stronger buying pressure behind the coin. Tezos surged by more than 12 percent in the past day and the increase allowed the coin to make another high for the first time since the corrective period started back in mid-December of 2019.

A golden cross was formed on the XTZ’s 12-hour chart signaled a further advance. This technical pattern developed as the 7-12-hour moving average crossed above the 30-12-hour moving average. Some of the tech analysts see this pattern as one of the best signs for buying that could even start a new upward trend. If Tezos is bound for a bullish impulse, it could find strong resistance around the 38.2 percent Fibonacci retracement level which is standing at the $1.44 level. Closing above this price level could start an increase in buy orders so XTZ could climb up the 23.6% Fibonacci retracement level at $1.60.

Getting lower than the 50 percent Fibonacci retracement level could totally invalidate the bullish outlook so a bearish push could ignite a sell-off that will take the crypto to the $1.17 support area. the recent rally for most cryptocurrencies pushed the market sentiment away from the fear zone and this change allowed many coins such as Tezos to start a new upward trend.