Tezos has been making steady progress since the beginning of September. While XTZ is heading towards new highs in October, it has embraced a healthy uptrend after the creation of three highs and higher lows.
While preparing this news, Tezos (XTZ) experienced a decline, falling by about 30% from its highest level, but the altcoin broke this fall to the upside and started to seek a rise again.
The “symmetrical triangle setup” seen on Tezos (XTZ) offered the bulls an opportunity to take the next leg forward and aim for a reversal to $8. At the time of writing, XTZ is trading at $6.95, down 0.6% in the last 24 hours.
Tezos (XTZ) 4-Hour Chart
The last three correction waves that took place in Tezos have been quite effective in the market. After each correction, losses averaged 44%, 27%, and 28%, with XTZ slipping below the 4-hour EMA bands each time. In addition, after these corrections, a rapid recovery was seen in the price of XTZ.
Now that XTZ is below the EMA Bands, a symmetrical triangle setup may have presented an ideal opportunity for the next uptrend.
According to analysts, the first target in XTZ is to recapture the $7.2 level and to try higher levels in the next stage. A close of XTZ above $7.43 would also confirm a breakout from the pattern. If it withstands the ups and downs within the pattern, a rally close to 12% from the exit could be awaiting XTZ. This will give XTZ an opportunity to reach $8 and attempt to rise more aggressively for higher price levels.
On the other hand, a close below $6.74 will show the bears taking action. A break to the upside will highlight the short-term support levels at $6.46 and $6.01.
As a result
While XTZ’s indicators have eased at the midline, each has traded in bullish setups. For example, the Relative Strength Index traded within its symmetrical triangle, while the Awesome Oscillator observed a potential surge after forming a bullish twin peak.
If receivers respond to these signals, there will be huge upward pressure for XTZ.
XTZ could tag the $8 mark behind a symmetrical triangle breakout. Traders can take this setup long as XTZ closes above $7.43 in strong volumes. The stop-loss can be set at $6.67.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.