XTZ is the native coin of the Tezos blockchain, a smart contract platform similar to Ethereum. The XTZ price has fallen under a descending resistance line since September 2021. The decrease culminated with a low of $0.70 in December 2022.
The XTZ price has increased since and broke out from the line in February 2022. However, it was rejected by the $1.30 resistance area and created a long upper wick (red icon) afterward, considered a sign of selling pressure.
At the same time, the RSI was rejected by the 50 line (red circle), confirming the importance of the resistance area.
If the XTZ price manages to break out, it could increase to the next long-term resistance at $2.90. However, if another rejection follows, the XTZ price could drop to the $0.70 lows again.
Tezos (XTZ) Price Bounces but Trend is Undetermined
The technical analysis from the six-hour time frame is not as clear-cut as the weekly one. On the bullish side, the price bounced at a possible ascending support line (green icon) and reclaimed the 0.618 Fib retracement support level. The 0.618 Fib level often acts as the bottom during corrective movements.
If so, the Tezos price has begun a new upward movement (green). This is supported by the breakout from the short-term descending resistance line.
However, despite the breakout over the past 24 hours, the six-hour RSI is undecided. Additionally, the price has yet to begin a significant rally.
In any case, the short-term trend can be considered bullish if the XTZ token price does not close below the ascending support line. As a result, an increase toward $1.38 is the most likely scenario.
To conclude, the most likely XTZ price forecast is an increase toward $1.38, though this move has not been confirmed yet. A close below the short-term ascending support line would invalidate this possibility and could cause a drop to $0.70.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.