Where next for Tezos price after a new record high?

on Aug 13, 2020
Updated: Aug 14, 2020
Listen
  • The latest Bitfinex data shows that there have never been more long positions opened for XTZ
  • Tezos price gained more than 28% in one of the strongest weekly performances since January last week
  • The buyers will be aiming for $4.75 next

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Tezos (XTZ) has been one of the top-performing cryptocurrencies over the past week when it gained almost 30%. XTZ price advanced over 28% last week before it set a new all-time high above $4.47 this week. 

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Fundamental analysis: Record interest in Tezos

Copy link to section

https://invezz.com/invest/crypto/buy-tezos/The latest data from the Bitfinex crypto exchange shows that there have never been more long positions opened for XTZ. It appears that investors at the digital currency exchange Bitfinex are buying Tezos in record numbers. 

The data indicates that traders think the value of XTZ is going to head higher in the weeks and months ahead. The interest in Tezos also aligns with a surge in price as the buyers continue to push the price above the previous record highs.

This has led to the Tezos community discussing the “price discovery”. This phenomenon takes place when an asset records a new all-time high following a period consolidation. It is a period of a market cycle that often leads to the parabolic performance of an asset as it eliminates historical resistances. 

There are indications that Tezos could manage to occupy some of Ethereum’s market share, which could fuel the XTZ’s further rally. 

However, for Tezos to become a more serious threat to ETH, Tezos-powered protocols and assets should be able to provide similar or better incentives than those that are provided by Ethereum. At the moment, Ethereum is outpacing Tezos in many aspects. 

Technical analysis: Where’s resistance

Copy link to section

Last week, Tezos gained more than 28% in one of the strongest weekly performances since January. This week, the uptrend has extended to push the price towards a new all-time high at $4.4717 as shown via coinextrude crypto tracker. 

XTZ price daily chart (TradingView)

The price action then corrected around 10% from the record highs before being the bulls have managed to push higher again. Buyers will be pushing to tag the first Fibonacci extension line at $4.75 as long as there is a strong buying interest in XTZ.

Summary

Copy link to section

Tezos has been one of the best-performing cryptocurrencies in the last week, with Bitfinex data showing that there are more XTZ long positions open now than ever before. A new all-time high has been set at $4.417 as the buyers push the price action towards the next resistance line at $4.75.

BitFinex Tezos Crypto Trading Ideas