Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Tezos has broken through key long-term trendline resistance.
- Tezos volume was up +900% at the time of writing.
Tezos [XTZ] was in for a surprise pump on October 10, up +10% in less than 24 hours before press time. The bullish momentum broke through crucial long-term trendline resistance. But the rally hit a new hurdle at $0.700.
Read Tezos [XTZ] Price forecast 2023-24
At the time of writing it is Bitcoin [BTC] defended $27k and targeted $28k with an established resistance level of $28.5k. As such, XTZ could try to extend the rally, but these hurdles could derail the bulls.
Can the Tezos bulls overcome these obstacles?
Source: XTZ/USDT on TradingView
There was some mild bullish exhaustion at the time of writing, as evidenced by the upper daily candlestick wick at the $0.700 roadblock. The roadblock is a previously voided daily bullish order block of $0.716 – $0.744 (red), formed on June 18, 2023.
The above level reversed into a resistance zone in mid-August. However, the bulls were not yet able to reach the support despite overcoming a long-term trendline resistance level at the time of writing. The bullish exhaustion we saw at the time of writing could complicate a further rally above the $0.70 roadblock.
But late bulls may re-enter at the confluence of the prior support and the long-term trendline resistance at $0.680 or $0.650, targeting the overhead roadblock at $0.7.
Conversely, a compelling daily candlestick close above the $0.700 hurdle could prompt XTZ to focus on the next target at $0.800 (a daily bearish OB).
Nevertheless, spot market demand and buying pressure soared, as evidenced by the rebound in the OBV and RSI at press time.
Demand for Tezos on the futures market spiked
Source: Coinglass
The Futures market also reflected the frenetic demand seen in the Spot market at the time of writing.
How much are 1,10,100 XTZs worth today?
According to Coinglass, Open Interest rose to >$30 million, a level last reached in February 2023. Additionally, Spot trading volume increased to +900% at the time of writing, according to CoinMarketcap, underscoring the vast market participants.
However, a sharp reversal and losses from BTC could complicate further bullish efforts. Therefore, following the BTC price action is crucial.