- Tezos daily chart analysis: descending channel and significant support/resistance margins
- Significant partnership ahead for Tezos.
Yerevan (CoinChapter.com) – XTZ, the native token of Tezos decentralized, open-source blockchain network, logged an impressive gain after the recent crypto crash on June 21. The token dropped as low as $2.13 on Tuesday before shooting to $2.79 the following Wednesday. After the 30 percent bullish break, XTZ corrected downward a bit and traded at $2.63 ahead of the European session Thursday.
XTZ daily chart
XTZ traded in a descending channel since the infamous May 19 crypto crash. The lower descending trendline kept the token from crashing further. The parallel upper trendline capped XTZ’s breakout attempts. The mid-range has also proven itself significant, providing both support and resistance throughout the formation.
Tezos reached the mid-range margin in the recent sessions and retested it as resistance this time, correcting downward. Should XTZ maintain its uptrend, the mid-range will provide support, helping the token get to the upper trendline. The resistance consists of the noted trendline and the 20-day exponential moving average (EMA-20). XTZ will have to break through the confluence of resistance if it hopes to hold a bullish bias.
If the token continues the descent in the upcoming sessions, it is likely to hit the channel’s lower trendline. XTZ could either pick up again and continue to trade in the formation or break down, in which case it still has two support lines to secure it. The $2.27 and $1.84 margins proved substantial in October 2020-January 2021.
What’s driving Tezos?
Before the latest crash on June 20, associated with China shutting down Bitcoin mining in several regions, Tezos made a significant alliance.
On June 17, McLaren Racing announced its plans to build an NFT (non-fungible token) platform on the Tezos blockchain. The platform will have NFTs illustrating the history of the racing brand as the second-longest-running F1 team. It will also feature the most notable racers and car models. As part of the agreement, McLaren racers will display the Tezos logo on their suits.
The partnership news granted Tezos a green candle on June 17. However, the crash that followed wiped over 25 percent of the token’s value. The daily chart suggests XTZ is getting back on its feet, considering the new alliance and the ubiquitous recovery across the crypto market.
Social media sentiment metric LunarCRUSH also noted XTZ’s success in the past sessions, giving it a ‘champion’s cup’ in a Fleet and sharing the top 10 influencers for the blockchain.