Technical index hints at a possible Tezos (XTZ) surge
- Tezos (XTZ) price performed excellently following the March price drop, before hitting a long, calm period.
- The calm saw the coin fluctuate between two levels, but this might change soon.
- Bollinger bands indicate that Tezos might soon see a major breakout, which could result in a strong surge.
Tezos (XTZ) has slipped down the list of largest cryptos by market cap over the last few weeks, currently sitting at 14th spot, with a market cap of $1.87 billion.
Meanwhile, the token’s price sits at $2.54, with 3.51% increase over the last 24 hours.
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While XTZ continuously consolidated within a narrow trading range, there are some indications that this might change in the near future. In fact, one indicator even hints at a possible bullish breakout.
The last several days have seen quite a lot of price volatility. The change in price trends led to around $15 billion being removed from the total crypto market cap. However, while most coins saw losses, Tezos itself behaved differently, as if it were preparing to go on a bull run of its own.
One technical indicator announces strong growth
The coin’s performance earlier this year has been excellent, at least after the mid-March price crash. In fact, its price has tripled since then. The coin went from $1 to as much as $3 in only about 45 days, which is rather considerable growth.
However, XTZ seemingly lost its momentum, and after hitting the peak, it slowed down and entered a period of stagnation. For some time, it did not give any signals about where it will go next, and it kept fluctuating between $2.3 and $3 since late April.
However, this kind of price action caused the Bollinger bands to squeeze on Tezos’ 3-day chart, and these squeezes usually hint that the price would soon move rather strongly.
Because of this, a breakout can be expected in the near future — one that will likely have little to do with the rest of the market, but a lot with XTZ itself.