With a surge of more than 30% past week, Tezos (XTZ) was one of the altcoins to watch out for. The XTZ news simply showed a bullish momentum and the price performance of this coin was among the strongest we have ever seen in 2020. Everything was good and Tezos surpassed EOS for the first time in history, up until we saw a correction and the XTZ price went below EOS once again.
Ever since March 12 which is dubbed the “Black Thursday” in the cryptonews and markets, the price of XTZ managed to rally by 207% – but pulled back 5.69% today which was enough to stop the rally and all that EOS needed to go above Tezos again.
Many analysts are now questioning if the new rally for Tezos is over. Since dropping to a 2020 low at $0.93 on March 12, the price of XTZ had been absolutely on fire, gaining more than 207% and within close distance of the all-time high at $3.96. For investors, the question is if this surge will continue or stop with the recent correction.
The truth is, no one can know this. Along with Chainlink, Tezos surpassed many coins and has been one of the top performers this month. Typically, such moves begin to show signs of overextension as the asset becomes overbought and traders eventually decide to take their profits.
At the moment, Tezos appears to be correcting a bit as the price has pulled back 5.69% since reaching a monthly high at $2.90. But the big question now is – is the uptrend over or are we seeing a period of consolidation starting now?
As we can see from the daily chart of the XTZ/USD pair, Tezos surpassed EOS but later encountered resistance at the 61.8% Fibonacci retracement levels just as Bitcoin (BTC) and many other altcoins at the moment. XTZ then formed a near tweezer top at $2.85 before it pulled back below the 61.8% Fib level.
Currently, the price is held up by the high volume node at $2.72, but a drop below this level would likely bring the price to the top channel of the ascending channel where we can see support at $2.59. Below this, traders will look for a bounce at the 50% Fib level ($2.44).
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