- Tezos price has been consolidating in a symmetrical triangle pattern for more than a month.
- A decisive close above $4.32 will confirm a bullish breakout and propel XTZ by 50% to $6.46.
- If XTZ slices through the setup’s lower trendline at $3.84, a bearish scenario will come into play.
Tezos price is coiling up inside a technical formation that could result in a 50% move after a successful breakout.
Tezos price awaits significant move
Tezos price is getting squeezed between two converging trend lines as it creates lower highs and higher lows due to aggressive buying and selling activity. By drawing trend lines connecting the swing highs and lows, a symmetrical triangle pattern forms.
This technical formation projects a 50% move, determined by measuring the distance between the pivot high and pivot low and adding it to the breakout point. Since this setup has no inherent bias, the breakout could head either way.
The SuperTrend indicator’s recent buy signal suggests a bullish regime in play. If the bulls continue to push Tezos price to slice through the pattern’s upper trend line around $4.32, it would confirm a bullish breakout to $6.46.
Supporting this positive outlook is the recent bounce of XTZ from the Momentum Reversal Indicator’s (MRI) State Trend Support levels at $3.27 and $3.18.
Although an upward trajectory seems likely, bulls’ rally could be deterred by MRI’s breakout line at $4.83 and the State Trend Resistance at $5.18.
XTZ/USDT 12-hour chart
Regardless of the bullish outlook, investors need to keep a close eye on $3.27. A spike in sellers leading to a breakdown of this level will invalidate the bullish outlook for Tezos price.
Additionally, this move could lead to a 13% downswing to $3.18. A breakdown of this demand barrier could spell disaster for the Proof-of-Stake coin as it could result in a 38% downswing to $1.95.
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