Tezos (XTZ) – Striving to stretch the current upside correctionPosted on Wednesday, January 4 2023 at 8:21 pm GMT+0000
Tezos (XTZ) is striving to extend above the 23.6% Fibonacci retracement level of the December freefall, after buyers re-emerged around a more than three-year low at 0.6977.
The coin staged a spectacular rally, stepped above the 55-period exponential moving average and erased more than 20% of the previous month’s losses, before pausing around the aforementioned Fibonacci level, which overlaps with the 100-period moving average. However, oscillators are now promoting additional bullish actions in the near-term, as the Awesome Oscillator is ramping up in the positive territory while CMF has gone parabolic beyond zero.
Nevertheless, for the recent recovery to gain more legs, the price will need first to clear the 23.6% Fibonacci level at 0.7787. If that turns out to be the case, the bulls will then advance toward the 38.2% Fibonacci retracement level at 0.8288. Beyond that barricade, the spotlight will shift towards the 50% Fibonacci retracement level at 0.8693, which along with the December 17th intraday top could form another strong upside obstacle.
Otherwise, if the aforementioned resistance area proves a hard nut to crack, the price will slip back to the 55-day exponential moving average seen at 0.7512. Some distance lower, attention will turn to the December 30th inside swing high at 0.7280. Should selling pressures overwhelm that bar too, the recent bottom of 0.6977 will instantly come into play.
In summary, despite the clear downtrend, the technical picture is increasing the stakes for some additional upside corrections. A decisive step above 0.7787 could help Tezos to recoup some extra lost ground.