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  • XTZ is currently trading at $2.37 after a notable 22% bounce in the past week.
  • The digital asset seems to be facing a strong resistance wall towards $3.

Tezos had a market capitalization of only $900 million at the beginning of 2020. Months later, in August, the digital asset managed to reach $3.1 billion, and even after the recent pullback, it still has $1.78 billion, almost twice as big as it was at the start of 2020.

There is a significant resistance level at $2.63 for Tezos

Despite the most recent XTZ bounce, the resistance level created at $2.63 will pose a significant threat to the bulls. This resistance point was tested several times through September 6 until the big rejection on September 15, which dropped Tezos more than 24%.

XTZ/USD daily chart

xtz price

Additionally, the 50-SMA is also on the way to $3 and will also act as a resistance level at $2.5 in the short-term. Rejection from this moving average has the potential to push Tezos down to $2 again as a re-test of this higher low established on October 8. 

XTZ/USD 12-hour chart

xtz price

The same resistance level at $2.5 can be found on the 12-hour chart. The difference is that here it’s the 100-SMA. Either way, it adds credibility to the $2.5 level being a robust resistance point. Additionally, the RSIC is overextended, which usually means the price will experience a pullback. 

Shorter time frames are in favor of the bulls

Nonetheless, despite the big resistance wall ahead, the current uptrend for Tezos is quite strong. On the 4-hour chart, the uptrend was confirmed on October 9, and the price has been creating higher lows and higher highs ever since.

XTZ/USD 4-hour chart

xtz price

The price also managed to climb above the 50-SMA and the 100-SMA, turning both into support levels. Most recently, it cracked the 200-SMA, again turning into a support level. There are no resistance levels on this particular chart until $2.63, and the MACD has stayed bullish for the past five days. 

A bullish breakout above $2.5 can easily push XTZ up to $2.63, where the next resistance point is located. Continuation above that point has the potential to push Tezos up to $3 as there are almost no other resistance levels on the way up.  

Key points for Tezos

Tezos bulls are facing a substantial resistance area between $2.5 and $2.63. Rejection from any of these two levels will most likely drop the price of XTZ down to $2 as a re-test in the short-term. Before $2, there is also some support around $2.2 where the 50-SMA and the 100-SMA on the 4-hour chart are currently established.

On the other hand, the bulls are currently in control of Tezos and are eying up $3. A bullish breakout above $2.63 can quickly drive the price of XTZ towards the psychological resistance level at $3. The shorter time-frames are in big favor of bulls.