Tezos price could double if it breaks crucial resistance

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Key takeaways Tezos has grown almost 80% over the past three days. The sudden recovery could allow him to cut $ 6.50. After overcoming resistance, XTZ may double in price. Share this article

Market participants are showing fear after this week’s crypto flash crash. Still, some assets like Tezos are showing that the bull market may not be over as they prepare for new all-time highs.

Tezos could enter a new uptrend

Tezos might be ready to rally.

The blockchain’s XTZ experienced a significant recovery after the flash crash of the crypto market on September 7. Its price rebounded nearly 80%, from a low of $ 3.90 to a high of $ 6.90.

It looks like the recent bullish momentum has allowed XTZ to slice the midline trendline of a parallel channel where its price has been contained since 2019.

Every time Tezos has hit the upper or middle limit of the channel since then, a rejection has occurred, pushing prices towards the lower edge. From this point it tends to rebound, which is consistent with the characteristic of a channel.

The consolidation pattern on the three-day chart suggests that as long as the channel’s midline trendline at $ 5.40 holds, XTZ may advance towards the upper limit at $ 12. But losing this crucial level as support could lead to a sharp correction to the lower edge of the channel to $ 3.

Source: TradingView

From a lower period such as the daily chart, the outlook for Tezos becomes clearer. The Tom DeMark (TD) Sequential Indicator shows that the resistance setup trendline at $ 6.60 is acting as stiff resistance, preventing XTZ from moving further.

Therefore, only a decisive daily candlestick closing above this resistance level is likely to mark the start of an 83% run towards $ 12.

Source: TradingView

It should be noted that in the event of a massive sell-off, there is a significant support group that could prevent Tezos from breaking through the lower end of the channel.

The price range between $ 4 and $ 3 is reinforced by the 200, 100 and 50 day moving averages as well as the trendline of the TD support pattern and the 23.6% Fibonacci retracement level. This significant demand wall could contain the fall in prices, serving as a rebound area.

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