Tezos Could Reach a New All-Time High Very Soon

Tezos Highlights

• The price is very close to reaching an all-time high.
• It is possibly in the third wave of a five-wave Elliott formation.
• There is resistance at 28,000 satoshis.
• A likely target for the top of the third wave is found at 40,000 satoshis.

Cryptocurrency trader @TraderLenny outlined an XTZ price chart, announcing that the recent increase caused XTZ to enter the top 10 cryptocurrencies ranked by market capitalization.

$XTZ | $BTC Update

Absolutely crushing it so far this year, peaking at an overall increase of 74% since the initial breakout of the descending wedge. #Tezos has now officially joined the top 10 cryptocurrencies by market capitalization club aswell. pic.twitter.com/9MDedmvhxV

— Lenny (@TraderLenny) February 9, 2020

How long will the current XTZ price increase continue? Keep reading below if you are interested in finding out.

Current Upward Movement

On January 15, the TEZOS price reached a low of 14,890 satoshis, coinciding with the 0.618 fib level of the entire increase and marking the end of the correction which began on December 13 of the previous year. Since then, the TEZOS price has increased by 86.61% in only 26 days, reaching a high of 27,360 satoshis. We stated in our previous analysis that “A price increase towards an all-time high of 30,000 satoshis is not ruled out. Whether the price is successful in getting there remains to be seen and will likely depend on signs of weakness once the price reaches the 25,500 resistance area.” The price has moved above the 25,500 satoshi resistance area without issue. In addition, the current daily candlestick is bullish engulfing and there is no bearish divergence in the RSI yet. Thus, we can assume that the price will soon move above the 28,000 satoshi resistance area and reach an all-time high.

Tezos Elliott Formation

Beginning in October 2019, it seems that the XTZ price began a five-wave Elliott formation. The aforementioned bounce of January 15 marked the end of the second wave. Using a Fibonacci retracement tool on the recent decrease, we can determine that the third wave is likely to end somewhere between 38,000 and 42,000 satoshis. Judging by the length of the first and second waves, the high should be reached by the end of February. A hypothetical target for the top of the fifth wave would be found near 60,000 satoshis, likely to be reached in May. To conclude, the Tezos price finished its correction on January 15 and has been increasing since. We believe it will soon reach a new all-time high and head towards 40,000 satoshis. In the longer-term, this increase is likely a part of the third wave from a five-wave Elliott formation.