XTZ Technical Analysis: Tezos Ready To Reclaim $2 This Year

The bullish reversal from the $1.39 support level forms a double bottom reversal pattern to break above the $1.66resistance level. Currently, the daily candle shows a retest phase seducing buyers with a post-retest reversal opportunity. But will the Tezos prices sustain the suddenly increased bearish pressure to give a bullish reversal?

Key Points:

Source - TradingView

XTZ Technical Analysis

The consolidating XTZ prices take a bullish reversal from the $1.40 support level to jump above the $1.66 resistance level, accounting for a 20% jump. The reversal completes the double bottom pattern and gives a bullish breakout of the $1.66 neckline.

Furthermore, the inclining trading volumes over the past week support the bull run and the pattern breakout, teasing an uptrend to the $2 mark. However, the daily candle shows heightened bearish influence leading to a 1.18% correction to retest the broken neckline.

The lack of volume supports the bullish thesis of a post-retest reversal, so sideline buyers can shortly find an entry spot if the daily candle shows long-tail formation.

If the market value sustains above $1.66, an uptrend to the overhead psychological barrier of $2 is possible. However, a closing price below $1.66 might treat the $1.50 before hitting the $1.40 crucial support level.

Technical Indicators

The daily-RSI slope tilts after the recent spike in the nearly oversold zone, reflecting the uptrend growing weak. However, the positive trend in the MACD histograms intensifies, reflecting growth in bullish sentiments.

Thus, the indicators maintain a buy signal for the XTZ token.

Resistance Levels - $1.85 and $2

Support Levels - $1.66 and $1.50