XTZ soars as Tezos announces Edo upgrade going live: these are the levels to look for

Written by: Ilija Rankovic
February 5, 2021
  • Tezos' price skyrockets on Edo upgrade proposal news.
  • XTZ is currently contesting the 61.8% Fib retracement level.
  • Only a daily close above the $3.386 will be considered bullish for the cryptocurrency.

Tezos (XTZ) has broken out of its descending trend on 3 January, and has been increasing in price ever since. However, the recent influx of buying power brought by a protocol upgrade announcement lifted its price to new highs. So, is this a good time to buy Tezos, and what levels should you look for in the short-term?

Tezos fundamental analysis: Edo upgrade going live on 13 February

Tezos has skyrocketed in price as its latest upgrade proposal, Edo, reached the quorum and is announced to go life around 13 February if the 80% approval manages to hold. This news are extremely bullish, as the new upgrade brings features such as new cryptographic primitives and a fifth voting period on top of improving efficiency and optimization.

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Tezos is closely following its 21-day EMA ascending support line as it moves to the upside, but might soon reach heavy resistance at the 61.8% Fib retracement level.

XTZ managed to score a week-over-week gain of 16.86%. When compared to other cryptocurrencies, it outpaced BTC‘s weekly gains of 4.78% but fell behind ETH‘s 25.13% gain.

At the time of writing, XTZ is trading for $3.40, which represents a price increase of 25.83% when compared to the previous month’s value. Tezos is currently the 23rd largest cryptocurrency by market cap, boasting a value of $2.58 billion.

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XTZ/USD technical analysis: 61.8% Fib retracement acts as a pivot point

Tezos (XTZ) has been trending up on increased volume ever since 3 January. The recent descent in trading volume and volatility indicated that a major move is in preparation as the community waited for news on the Edo upgrade. While the current push is extremely strong, Tezos faces massive resistance at the 61.8% Fib retracement level, and only a daily candle close above this level will be considered bullish news.

On the other hand, Tezos’ downside is well-protected by the 21-day EMA as well as the 50-day EMA, which will be very hard to push past.

XTZ/USD daily chart
XTZ/USD daily chart

Tezos’ RSI on the daily time-frame broke out of its regular trading range and moved towards the overbought territory, with its current value sitting at 64.98.

XTZ/USD 1-hour chart
XTZ/USD 1-hour chart

XTZ’s hourly chart shows us a very interesting trading pattern. Recent volume surges brought its price to around $3.18, but bulls were never able to break it with confidence. However, positive sentiment fueled by good fundamentals brought a massive volume increase, which has led to XTZ surging past the $3.18 level and towards the 61.8% Fib retracement level of $3.386.