XTZ Continues Consolidation, Preparing To Surge After Market Correction

XTZ continues consolidation in the narrow trading range but a particular technical index shows that the pressure for a bullish breakout is in preparation, as we are reading further in the Tezos XTZ news.

Tezos traded between the $2.3 support and the $3 resistance level since April but the price action forced the Bollinger Bands to squeeze which usually means more volatility coming in. The TD sequential indicator predicts that XTZ will make a breakout in an upward direction.
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Over $15 billion was wiped out of the market capitalization of the entire crypto industry in the last three days and most of the cryptocurrencies experienced losses. However, Tezos seems to be gearing up for the bullish breakout in the near-term.

Tezos entered an impressive bull run that saw the price increase after the March market meltdown. The smart contracts token increased from a low of $1 to a high of $3 in a little over a month. After the peak, however, the price entered a stagnation phase with no clear indicators of where the price is headed next. The cryptocurrency traded between $2.3 support and the $3 resistance since late April. Only a clear daily candlestick close below these critical levels will determine the direction of the price trend.

The lackluster price action forced the Bollinger bands to squeeze XTZ’s 3-day chart which indicates periods of low volatility that are succeeded by strong price movements. The longer the squeeze, the higher the chances of a strong breakout. Since the technical analysis tool didn’t provide a clear path about the direction of Tezos’s trend, the areas between the lower and upper Bollinger band is clearly a no-trade zone. Trading within this area is risky given the significant price movement that is preparing. As XTZ continues the consolidation phase, the TD sequential indicators seem to be in favor of the bulls in the same time frame. This technical index presented a buy signal while the bullish formation forecasted a one to four 3-day candlesticks of the start of another countdown.

A green two candlestick trading above the current green one candle could confirm the buy signal and if this happens, Tezos will be able to break above the overhead resistance at $3. Breaking above this price level, XTZ could even reach the $4 price level or set a new yearly high. Despite the TD optimistic outlook, investors have to remain cautious about breaking the $2.3 support level. Losing this support zone will threaten the bullish scenario and can lead to more losses.