Tezos’s [XTZ] sharp bullish reversal may help resume rally

Tezos [XTZ] registered an impressive run-up of over 20% in the last 24-hours, as it surged to $5.51. The price bounced off significant support, and the chart now demonstrates limited downside risks. Even as the market does not look very hot here, the altcoin has managed to find strength during these conditions.

With a market cap of $4.8 billion, Tezos ended a strong sell-off period that has been taking shape since October. XTZ investors can now restart its uptrend. A similar sentiment was echoed by Bitcoin bull Tim Draper in a new interview on Bloomberg Markets. Draper said that Tezos has the things that he wants to see in a cryptocurrency project. The billionaire venture capitalist stated,

“What I look for is who are the entrepreneurs and who are the engineers behind a given token. I love some of the tokens. I love Tezos because it’s got a great engineering team, and they’ve redefined how to operate a token. They do it as proof of stake. They use less energy, and they have a new form of governance and that’s exciting.”

Tezos [XTZ] bulls make a comeback

After successfully bouncing off a major barrier of $4.6, XTZ’s price broke from a two-month-long falling wedge pattern. The bearish crossover by the 50 DMA [Pink] and the 100 DMA [Blue] had a mild impact as the asset underwent a mild correction in the wee hours of Tuesday. 

However, the spike in trading volume and volatility may cushion the latest uptrend. The 200 DMA [Yellow] hovering below the candlesticks was also found to be providing strong support from a damaging turn of events.

Fresh Rally Hints Are In Sight

The Klinger Oscillator [KO] underwent a bullish crossover and has been on the rise ever since. The green closing bars of the Awesome Oscillator [AO] also indicated the much-needed switch to bullish momentum in the coin market. The sellers, however, still, dominated the Relative Strength Index [RSI]. The spike, on the other hand, does signal a weakening selling pressure and a further surge over the 50-median line will confirm the formation of a bottom.  

According to the above chart, XTZ is currently fluctuating within the confines of the $5.33 to $5.95 demand zone. A decisive close above $6.09 will validate the beginning of an uptrend. If the asset manages to flip his major hurdle, an ascent is likely to catapult XTZ to $6.52 which will bring other resistance levels of $7.60 and $8.75 into play.

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