- Tezos holds above the 200 SMA after encountering resistance at a weekly high ($2.70).
- XTZ/USD looks forward to the bullish pennant pattern breakout likely to elevate it to $3.0.
Tezos has been among the altcoins that have been on an upward roll this week. From levels around $2.21, XTZ rose to weekly highs of $2.70 (on Bitfinex). The other cryptoassets doing well include XRP, Chainlink, Cardano and Stellar.
On rising to weekly highs, it was overwhelmingly difficult to sustain gains above $2.70. Instead, the price has been retreating but gradually. Support at $2.65 was anticipated but failed to rise to the occasion. XTZ/USD dropped below 50 SMA in the 1-hour range. At the time of writing, Tezos has a market value of $2.4 after bouncing off the support at the 200 SMA.
The price has also bounced off the support of the bullish pennant pattern. If the building bullish momentum continues, a breakout above the pennant resistance could easily come into the picture. When followed through with an increase in trading volume and investor confidence, a rally to $3.0 would be imminent.
As of now, the plan to hold above $2.40 and the pennant support is keeping the bulls busy. Eyes are also glued on breaking above $2.50 short term hurdle. The RSI supports the ongoing bullish momentum following the support at 30 (oversold). On the other hand, the MACD shines a light on the presence of bears in the market. The indicator is currently stuck in the negative region while the bearish divergence hints that it’s the selling pressure holding the buyers back from taking down the resistance at $2.50.