Tezos rallies 20% and returns to the market cap top20

Tezos (XTZ) was one of the rare cryptocurrencies to recover completely from the recent crypto market downtrend. Its price, however, did not only recover, but managed to surge 20% and contest the $3 level in a matter of hours.Fundamental analysis: Tezos’ booming fundamentals create the potential for a major price spikeTezos is a blockchain that aims to be a competitor to Ethereum, but with a small catch. The project aims to offer infrastructure that is far more advanced — meaning that it can evolve and improve over time without any danger of a hard fork. XTZ holders can vote on proposals for protocol upgrades, thus being fully involved in the Tezos ecosystem. The technology underpinning Tezos had its first “public appearance” in late 2014 when its whitepaper was released. The Tezos mainnet faced many difficulties from that point on, which postponed its launch date until 2018.Tezos is constantly upgrading its platform, and lets its users govern it by letting them decide on the “value” and priority of the next upgrade. This, in turn, makes both developers’ and users’ position much more fulfilling, thus increasing perceived fundamental value for them. However, this doesn’t take away from Tezos’ booming fundamentals, which came as a result of the dev team rolling out various updates and announcing numerous partnerships. Tezos (XTZ) managed to post week-over-week gains of 17.93%. When compared to other cryptocurrencies, BTC posted a loss of 7.21%, while ETH managed to gain 9.36% over the same period.At the time of writing, Tezos is trading for $3.09, representing a price increase of 54.93% compared to the previous month’s value. Tezos is currently the 19th largest cryptocurrency by market cap, boasting a value of $2.3 billion.XTZ/USD technical analysis: Tezos recovers from the downturn as quickly as it dipped – the number 50 plays an important roleTezos’ attempts of slowly moving towards the upside in 2021 have been interrupted by market downturns more than once. However, XTZ found support in the 50-day exponential moving average three times already, and bounced off of it each time, quickly recouping what they lost and pushing even higher. The exact same thing happened today, when the crypto market pulled back heavily as BTC dipped below $30k at one point. While Tezos did move to the downside alongside the market, its price direction changed as soon as it hit the 50-day EMA and a new surge began. Its price is now contesting the $3 level and recent highs that sit just above it.XTZ buyers seem to be very responsive to the price hitting the 50-day and 50-hour EMA, as these two levels have been crucial in its price development in 2021.Tezos faces its main zone of resistance slightly above $3. However, the resistance zone continues all the way up to its $4.5 highs, as there are no low resistance pockets to the upside. When it comes to support levels, Tezos’ main asset is the 50-day moving average, as well as the zone between $2 and $2.4. XTZ/USD daily chartTezos’ RSI on the daily chart shows just how volatile the past week has been. The RSI is currently moving towards the overbought territory, with its value sitting at 61.71. However, its 1-hour RSI is currently on the verge of becoming overbought, as its value it 69.18.XTZ/USD 1-hour chartTezos’ hourly outlook shows us the force that XTZ bulls had after hitting the 50-day EMA. Tezos pushed towards the upside with tremendous strength, quickly reaching $3, but stopping to confirm its price direction at the 50-hour EMA after they managed to cross it. If we take into account the descending volume and the RSI oscillator reaching very close to overbought territory, we can conclude that it is more likely that XTZ will head back down than push through the $3.11 level and contest the $3.21 level and beyond. If, however, the push to the upside is to continue, Tezos would require an influx of bulls coming to the market.The post Tezos rallies 20% and returns to the market cap top20 appeared first on Invezz