- Tezos has broken above a bull flag pattern on the 4-hour chart, ready to fly to $6.55.
- A daily close above the $5 level will help validate the uptrend.
- XTZ is not out of the woods yet, especially with the resistance at $5.65, the all-time high.
Tezos is primed for another upswing after securing support at $3.7. The need to find support came after XTZ was rejected from the all-time high of $5.65. A technical breakout hints at the price rallying another 44% to new record highs of $6.55.
Tezos breaks out from the bull flag
A bull flag is a technical pattern that is interpreted as bullish. It forms after an asset has appreciated drastically but meets a barrier, cutting short the uptrend. The correction that follows is not very rapid and usually stops midway through the flagpole – following the consolidation, a breakout as long as the pole’s length is expected.
In this case, Tezos is trading at $4.92 after a recent breakout from the bull flag. A 44% upswing is anticipated from the breakout point, which might bring XTZ to new record highs around $6.55. The Relative Strength Index (RSI) validates the uptrend by moving toward the overbought region.
XTZ/USD 4-hour chart
Looking at the other side of the picture
The 12-hour Parabolic SAR points are above Tezos price, which is a bearish signal. The parabolas indicate a change in the asset’s trend by either staying above the price (bearish) or forming below the price (bullish).
XTZ/USD 4-hour chart
Similarly, a breakout is needed above $5 to sustain the uptrend. Failure to close the day above this level could encourage sellers to increase their positions, shorting XTZ toward the 50 Simple Moving Average (SMA) support at $3.7.
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