Tezos (XTZ) eyes a 20% uptrend based on bullish technicals; what's…

Key Takeaways:

Tezos (XTZ) bottomed out at a two-year low and formed a Rising channel.
The formation predicts a 20% upside move in the short term.
XTZ/USD prints a Falling Wedge on the daily chart, hinting at three-digit gains.

YEREVAN (CoinChapter.com) – XTZ, the in-house token of smart contract platform Tezos, followed Bitcoin’s price action quarter-to-date, with copycat ups and downs. As a result, the digital asset traded at $1.8 ahead of Friday’s New York session, hinting at a possible 20% uptrend in the short term.

Tezos four-hour chart features a Rising Channel.

The XTZ/USD price action formed a setup dubbed the Rising Channel on the low time frame four-hour chart. The pattern features two parallel trendlines with a rising slope and a significant mid-range. The upper trendline capped the bullish attempts, while the bottom trendline prevented breakdowns. Notably, the formation has been relevant since Tezos bottomed out at a two-year low on May 12.

Tezos (XTZ) four-hour chart featuring a Rising Channel. Source: TradingView.com

The Rising Channel does not forecast a bias after XTZ breaks in either direction. However, it is instrumental in determining short-term sentiment. The Tezos token retested the support trendline on May 27, which primes the token for a consecutive resistance retest.

Also read: Tezos Startup Founders Launch Web3 Accelerator.

If the bullish scenario pans out, the target for XTZ will stand at $2.2, or 20% higher than the current value. Additionally, the daily chart painted a hopeful picture for the Tezos bulls.

XTZ/USD daily price action in a Falling Wedge

The daily price action formed a bullish reversal setup, dubbed the Falling Wedge. The latter features converging resistance and support. They enclose the price action and drive the value down while lowering the swing. The formation forecasts an upside move, equal to the maximal distance between the trendlines after XTZ breaks the resistance.

Tezos (XTZ) daily price action. Source: TradingView.com

The prediction pinpoints the target price at $6.7 in Q3 2022, which would mean an over 270% uptrend.

Also read: Bitcoin to $20K likely as Fed minutes show more aggressive rate hikes.

While the forecast seems too audacious for the bearish market, XTZ’s future bias remains dependent on the overall crypto climate and on Bitcoin in particular. As CoinChapter previously reported, the broader economic conditions don’t favor the crypto bulls either. The upcoming sessions will show if Tezos can pull off the short-term 20% uptrend after all.