Since September, the price of Tezos has dropped by 20%. The downtrend has been choppy, which suggests that a bullish rebound could happen. If the price goes above $1.45, it could lead to a 27% rise. The price of Tezos shows a possible setup for a swing trade. Key levels have been defined.
Tezos price has potential
The price of Tezos (XTZ) has been below water all fall, as the bulls have been stuck in a 20% drop. But if you look at the technicals, you can see that the bulls are building up steam for a big punch against the trend.
At the moment, the auction price of XTZ is $1.39. Many people who use the Elliot Wave method call the wedge-shaped pattern made by the falling trend an “ending diagonal.” At the bottom of the pattern, a lot of volumes have started coming into the market. On October 25, the 8-day exponential and 21-day simple moving averages were successfully herded by the bulls. The Relative Strength Index has also moved back into a positive area, and it has made a number of bullish divergences.
If the technicals are right, the price of Tezos could be about to skyrocket 27% toward the highs of September at $1.76. A break above the $1.45 swing high will be the last confirmation and the best time for bulls who have been sitting on the sidelines to get back in.
If the confirmation signal happens, the bullish thesis will be broken if the price falls below the $1.25 swing low from October 13. On the other hand, a breach of the 1.25 low could cause a rush of sellers aiming for liquidity levels near $1.00, which could lead to a 25% drop.
