Being open-source, Tezos is a completely decentralized blockchain network, which offers transactions via its native cryptocurrency XTZ. Facilitating the development of decentralized applications makes it one of the strongest competitors to Ethereum (ETH). Tezos has fallen to the 43rd position among all the cryptocurrencies and has over $3 billion market capitalization.
While there has been a good upside movement in the past month from the lows of $2.10 to the current value of $3.89 as of August 16, 2021, we expect a continuous bull run in Tezos for the time being with the condition that it crossed its 200 DMA.
Tezos to Retest $6 Amid Growing Volume
At present, Tezos has a strong swing resistance to cross before becoming one-sided trending which can help it reclaim its all-time high levels of $8.41. Another important resistance that can halt its upside movement is the 200-day moving average, which is currently at $4.07. Once these levels are crossed, we can expect a 50-100 percent upside movement in less than a month.
After crossing the immediate resistance zone of $3.66 to $4.07, we expect XTZ to consolidate and maybe retest its 200 days moving average value before heading upwards. The increased volume on daily charts indicates higher traction in this cryptocurrency compared to the volumes during April and May when it made new highs.
On the downside, there is immediate support of 100 DMA active at $3.37, followed by swing support of $3.03, all of which indicate strong support at immediate levels. Such strong support and increasing volumes help XTZ retest $6 soon. The MACD indicator also shows a strong one-sided movement with no sign of weakness of consolidation so far. There can be another resistance near $6, but that would still carry a 1:2 risk to reward ratio.
