Tezos, the 13th largest cryptocurrency in the market, is the latest altcoin to note amazing returns, with XTZ surging by 46% in less than 2 weeks. At press time, XTZ’s market cap stood at $2.36 billion, with the crypto positioned right below EOS on the charts.
Tezos weekly price chart
With the price of altcoins surging, XTZ’s time has arrived and more seems to be on its way. The chart attached herein shows the weekly price action for XTZ. On observation, it can be found that the findings are clearly bullish considering the three higher highs being formed for over 2 months.
Source: XTZUSD on TradingView
With Tezos hitting new highs not seen since Q1 of 2020, things are starting to turn bullish, especially for altcoins. The weekly chart suggested that a close above $3.21 would be bullish for XTZ. However, anything below this level would have a chance of retracement. An unsuccessful close above $3.21 would probably push the price down to $2.77, a 13.70% drop.
The RSI is the supporting factor for a weekly close above $3.21 since it hasn’t hit the overbought zone yet. Additionally, a close above the aforementioned level could help push the price of the crypto to $3.59, an 8-10% surge from the press time level.
Tezos hourly chart
Source: XTZUSD on TradingView
The hourly chart for Tezos shed more light on the aforementioned retracement. As seen in the chart, the drop might not extend to as low as $2.77 without testing the support at $3.063. Hence, a short position at the press time price with an RR of 1.69 can be obtained, with profits ranging up to 4.5% while risking 2.7% of the capital.
However, the stop-loss points can be adjusted since the risk exposure for each individual is different. All in all, a small retracement before XTZ hits a new high seems likely, especially with the bearish divergence forming between the price and the Relative Strength Index. Since the overall trend is up, it would be appropriate if profits are set at $3.063, while waiting before opening any positions.