Tezos and Chainlink are back in the green after surging over 18% in the last 24 hours. Now, both of these cryptocurrencies are testing key resistance levels that could be the catalyst for a further advance.
Tezos Prepares for Significant Price Movement
After peaking at a high of $4 in mid-February, Tezos experienced a major sell-off that pushed its price all the way down to $1. From a technical perspective, the bearish impulse appears to have been triggered by a rejection off the upper boundary of a parallel channel where it has been contained since 2018.
Since then, each time XTZ rises to the top of the channel, it drops down to hit the bottom of the channel, and from this point, it bounces back again. These are the primary characteristics of a channel.
Now that Tezos took a 70% nosedive to the lower boundary of the channel, it appears like this support level was able to hold. Indeed, this barrier prevented a further decline allowing XTZ to rebound by nearly 80% over the last two weeks.
Based on historical data, this cryptocurrency could be on its way up to test the resistance presented by the middle line of the parallel channel, which will eventually determine where it is headed next. Read More...