- Tezos price is rising within an ascending parallel channel with the 100-day SMA opposing a potential bullish breakout.
- Investors generally feel XTZ has the muscle to lift above $2.00 in the short-term.
- Several support levels are in line to prevent Tezos from making a U-turn to retest buyer congestion established at $1.35.
The cryptocurrency market has taken a considerable step back from bullish activities observed last week. Tezos price is consolidating in the confines of an ascending parallel channel while awaiting a breakout. Traders will likely claim some sizeable gains if they time the impending breakout to $2.00 and later to $2.20.
Tezos Price inching closer to a bullish breakout
Following June’s primary support formed at $1.35, Tezos price printed four higher highs and higher lows. Connecting these price points paints a bullish picture in an ascending parallel channel.
Tezos price seems ready to head north to $2.00 and $2.20, respectively, but the 100-day Simple Moving Average (SMA) on the daily chart currently stands in the way. Its upside potential will remain intact if the channel’s through line holds.
XTZ/USD Daily Chart
An analysis of the Moving Average Convergence Divergence (MACD) in the same timeframe shows buyers have the upper hand. It is worth remembering that the momentum behind Tezos price is bound to increase as the MACD lifts higher above the mean line.
The total Weighted Sentiment, an on-chain metric by Santiment, adds credibility to Tezos price’s bullish forecast. Theoretically, sharp dips below the mean line indicate high social volume coupled with an overall negative sentiment. Intriguingly, this metric is inversely related to the price. In other words, dips like the one seen in the chart below hint at an incoming bullish move.
Tezos Weighted Sentiment
Although Tezos price generally looks bullish, investors should consider booking profits at $2. On the downside, suffering rejection from the 100-day SMA means that XTZ may explore downhill levels to the 50-day SMA. If declines become too challenging to stop owing to the mundane trading in the larger cryptocurrency market, Tezos price could retest $1.35.