Tezos News Today – since it dropped during the March 12 bear market to a low of $0.93, the price of Tezos has been on fire. It has gained 207%. It is now trading within close distance of its ATH at $3.96. Investors wonder when this rally will stop. Typically such a move will show signs of overextension after the asset moves into the overbought area and traders start to take profits.

Currently, Tezos is correcting partially as its price pulled back by 5.69% since it reached a monthly high at the $2.90 area. The question on many minds is ‘when will the uptrend end?’ see the analysis below to determine if there are signs that this uptrend will stop or continue.

XTZ Formed a Near Local Top at $2.85

XTZ has encountered resistance at the 61.8% Fib retracement area. According to the daily chart, the price of XTZ formed a near local top at the $2.85 area before pulling back beneath the 61.8% Fib area. Tezos’ recent move above the $2.58 area pushed it above the ascending channel. Before this, there was a retest of the underlying support. This means that this pullback could be a repeat of the coin’s previous price movement.

Tezos price is in a high volume VPVR node at $2.72. If there is a drop under this area, the price of Tezos could top the ascending channel with support at $2.59. Under this area, traders will expect a bounce at the 50% Fib area ($2.44). Beneath the 50% Fib area, the next support stands at the $2.35 area. RSI is slightly down but remains above the ascending pattern and in the bull area.

MACD Pattern Has Pulled Under the Signal Pattern Via the 4-hour Chart

Via the 4-hour chart, MACD has pulled under the signal pattern. Tezos’ high volume surges have vanished. XTZ is below the Bollinger Band MA and as mentioned above the VPVR shows that under the $2.72 area there’s less demand until the $2.35 point (just below the 50% Fib position). Traders should look at shorter timeframes to determine if XTZ can start to form a pattern of lows and then initiate a 4-hour close above the $2.79 and $2.85 area.

Also, traders can wait for a breakout above the $2.92 area. Because the 4-hour chart shows minimal resistance above this area. The digital currency market is an unpredictable asset market. Hence, traders and investors must tread carefully before moving forward with any outlook.