Tezos (XTZ) a move up to $12 before year-end!Tezos (XTZ)
Tezos is one of the fastest growing, security focused, upgradeable and built to last blockchain platforms out there. Tezos is an open-source platform that addresses key barriers facing blockchain adoption for assets and applications backed by a global community of validators, researchers, and builders. By design, Tezos embraces long-term upgradability, open participation, collaboration, and smart contract safety. The platform was built with mechanisms to ensure active community governance and participation. Users can actively participate by evaluating, proposing, or approving amendments to Tezos. This design empowers the type of collaborative innovation that keeps Tezos on the bleeding edge of technology. Unlike Proof-of-Work blockchains like Bitcoin or Ethereum, Tezos’ Proof-of-Stake requires significantly less energy and cost to operate, making it an ideal alternative platform for building blockchain applications that are eco-friendly.
From a technical point of view, the price action in Tezos has been outstanding so far in 2021. XTZ started the year at around $2 per coin and we saw the price reaching its mid-cycle top at around $8.45 in the beginning of May, 2021. This represented a mind-blowing 323% return within the first half of the year. Subsequently, XTZ price dropped substantially as part of the broad crypto market sell off that we saw in the May-July period. This basically erased all of the previously generated returns in 2021 as XTZ returned to the $2 range and stayed there for couple of months. As you can probably guess, this was an outstanding opportunity to buy XTZ and build your positions further. The price managed to again appreciate with over 357% in the July-October period this year. We saw Tezos reaching a new all-time high at $9.14 per coin in the beginning of October. Since then, we have seen a rather strong corrective movement within the borders of the upward trending channel that XTZ has been appreciating in. The price of XTZ is currently sitting at around $6.27 per coin, which also coincides perfectly with the large number of various supports lying around there. We have the upward sloping diagonal support (blue line), which has acted as a strong support for the most recent bull run in Tezos, as the price has tested that line 6 times since July and each and every time buyers have come in and pushed prices higher. Next, we have the 5, 20 and 50 EMAs all converging within the $6-6.50 range, which also shows that we can expect buyers to start coming in at these levels. Furthermore, the most recent correction stopped right in the 50-61.8% Fibonacci retracement zone, which historically has proven to be a highly effective tool for issuing a BUY signal during a corrective movement within the trend.
Our plan is to open a position around the $6.25 (current) mark and wait for the price to break above the bullish continuation ascending triangle pattern (black line and blue line) that is forming on the daily chart. A break above the $8 could be expected in the next 5-10 market days, which will then open up the door for a push up towards the $12 per coin level. We believe that XTZ currently presents an outstanding opportunity for growth oriented traders and investors to double their money within the next 6-8 weeks.
From a risk management standpoint we would place our Stop Loss at around $4.75 in case of a price breakdown.
