2021 has been a roller coaster for Tezos (XTZ) holders . Is 2022 going to bring more swings to the price? Read more to find out!
Tezos (XTZ), the self-upgradeable and energy-efficient proof-of-stake blockchain flew under the radar this year.
Tezos is a blockchain network that was created by former Morgan Stanley analyst, Arthur Breitman. Similar to Ethereum, however, Tezos can evolve without having to hard fork. The blockchain allows its community to vote and improve its flaws. Anyone who is a token holder has voting rights to the network.
In this article, you'll see multiple time frames for Tezos's native token, XTZ.
At the time of this writing, XTZ is ranked the 43rd largest cryptocurrency, according to CoinMarketCap. The market cap is sitting around 3.7 billion dollars.
In the last year, XTZ has seen some steady price growth. At one point XTZ was up over 300% for the year. Now let's take a deep dive into the charts!
XTZ/USDT on a Monthly Chart
Looking at the logarithmic chart using the monthly time frame to keep things simple. You can see the overall trend is in favor of the bulls.
XTZ has been making higher highs and higher lows since the beginning of October. Looking at the most recent price action, we can see that XTZ is currently sitting at an area of interest. Also, if you take a close look, you can see that this month’s low is higher than last month’s low. This is a sign that the bulls are regaining control.
On the left-hand side, the structure leaves clues. When looking at the previous higher low, we can see there was a doji candle printed. This is a sign of indecision and a possible reversal on the way. This doji candle was followed by a reversal to the upside. With roughly half a month left, there is plenty of time to see another big move play out.
Today we have roughly half a month left, and the same doji candle is forming. Let's take a closer look!
XTZ/USDT on a Weekly Chart
Sticking with the logarithmic chart and shifting to the weekly timeframe. You get a better picture of the support patterns forming.
The last time the price was at this level was in March, where we consolidated for a couple of weeks before making a move to the upside. The only difference this time is that the price action is looking to print a higher low, whereas last time there was no confirmation of reversal. This is a pivotal level for XTZ and can create momentum for the year. Looking at the previous higher low, we can see the same volume coming in before it ran 200%
A weekly close above its minor resistance is a sign that we will continue to the upside.
If the bulls manage to regain control here, XTZ will look for a new all-time high. Rejection from this level will send XTZ to lower lows and likely make it revisit the sub $3.50 levels.
Let’s take an even closer look and shift to the daily chart!
XTZ/USDT on a Daily Chart
Again, use the logarithmic chart and look at the daily timeframe. This timeframe gives us a better look at what happens on a daily level.
We can see the price remains in favor of the bulls. The support at $3.75 is still holding strong after multiple bounces. The last time we found support at this level, we had a wild ride to $9.25.
At the time of this writing price action is testing minor resistance. If we close above this level, we can expect a minor resistance to be tested. Rejection from this level can push XTZ towards the $3.00 support zone.
For the bulls, a close above $4.45 is a good sign. For the bears, rejection from this level will push the price towards the area of interest.
$5.00 is the psychological test, a break above this level will put bulls in full control.
XTZ/BTC on a Weekly Chart
Of course, finally, XTZ compared to BTC. Using the logarithmic chart, we are testing the price at a critical level. Let's have a look!
As you can see, the price level has been a battlefield between the bears and bulls. There are fake-outs in both directions, with the range only tightening. As we mentioned before, history doesn't always repeat itself, but it does often rhyme.
You can see that the price is currently testing a critical resistance. A break and a subsequent close above this level will leave the door open to 20,000 satoshis. However, a rejection from this level will send XTZ towards 7,800 and even 6,600 zones, if bears gain full control.
BTC continues to outperform XTZ at the moment but is sitting at a pivotal level.
Summarizing the Above
- The overall trend is in favor of the bulls.
- This is a pivotal level for XTZ and can create momentum for the year.
- $5.00 is the psychological test, a break above this level will put the bulls in full control.
- BTC continues to outperform XTZ now but is sitting at a pivotal level.
Remember that this is all based on the subjective views of the writer. As always do your own research.
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