A medium-term ascending trendline is offering strong support to the said uptrend.
Favorable fundamentals and technicals could lead XTZ to establish an all-time high in bitcoin-enabled markets.
Tezos blockchain’s native asset XTZ could register a historic high against Bitcoin in 2020 despite facing the risks of deeper dives.
The tenth-largest cryptocurrency surged by circa 313 percent after bottoming out near 7,963 sats in October 2019. At its highest, XTZ was trading at 38,644, but a Coronavirus-induced sell-off led it lower towards a fresh 2020 low of 24,596. Nevertheless, it has since rebounded impressively, marking one of the best recoveries among the top crypto assets.
XTZBTC rose steadily, supported by a medium-term ascending trendline | Source: TradingView.com, Binance
XTZ’s uptrend received ample technical support from a medium-term ascending trendline, as illustrated in the chart above. Each of the cryptocurrency’s downside correction since October 2019 landed at the purpled line. Traders used the level as their cue to accumulate, giving prices the much-needed bounce back.
So it appears, the market is looking forward to repeating the bullish fractal. XTZ last bounced from the trendline April 6 – and has since extended its rebound by 36.52 percent.
Pullback before Gains
Popular Crypto Youtuber Quentin Francois sees the Tezos price testing resistance near 34,202 sats and then falling back to retest the trendline. But the trader seems convinced that XTZ’s long-term price target is way beyond its all-time high of 40,495. Excerpts from his statements:
“A very good-looking chart is that of Tezos’s XTZ. Currently sitting at resistance, it looks like it wants more though. A possible pullback towards 29600 sats before another attempt to break the resistance and attack the all-time high vs BTC.”
XTZ’s likelihood to fall below its ascending trendline support is also high. The reason lies in the macroeconomic sector that is seeing investors dumping risk-on assets for cash. That is due to the fast-spreading novel Coronavirus that has locked down economies all around the globe.
Investors, most likely, could utilize XTZ’s impressive gains to go back into the bitcoin or US dollar market. Nevertheless, holding the ascending trendline support would preserve the altcoin’s long-term bullish target above 40,495 sats.
Favorable Tezos Fundamentals
XTZ’s price rise also came on the back of a string of positive developments in the Tezos blockchain ecosystem. First, it bagged new clients in the Digital Transfer Agent platform Vertalo and trading system tZero. They want Tezos ledger to tokenize $300 million worth of real estate properties.
Second, Ethereum developer Truffle announced that it would allow its users to develop and deploy apps on the Tezos blockchain.
Photo by Christopher Burns on Unsplash