Is It Too Late to Buy Tezos? XTZ Price Rallies 9% as New Telegram Crypto Casino Raises $725,000

Is It Too Late to Buy Tezos? XTZ Price Rallies 9% as New Telegram Crypto Casino Raises $725,000

Over the past 48 hours, Tezos (XTZ) has embarked on a roller-coaster ride, swinging between the ranks of top gainers and top losers in the crypto market. This frenzy has left investors wondering: Is it still a good time to buy Tezos? Let’s delve into the recent price action and what it might mean for potential investors.

In a stunning display of volatility, XTZ recorded a remarkable 15.8% surge in price one day, only to be followed by an equally dramatic 10.72% nosedive the next. These wild fluctuations have turned the spotlight on Tezos, but what’s intriguing is that there hasn’t been any major fundamental news driving these sudden price movements.

Some analysts speculate that the price swings could be linked to a marketing push related to Tezos’ NFTs with Manchester United. Others suggest it might simply be the result of an unexpected surge in trading volume, reaching an impressive $158 million.

Tezos Price Analysis: Assessing the Current State

At the time of writing, Tezos is trading at approximately $0.66, marking a 24-hour change of -3.48%. This downtrend came after the price encountered resistance at the upper trendline of $0.75, a level untouched since August 16.

One noteworthy aspect of Tezos’s recent price action is its consolidation around the 20-day moving average (20DMA), standing at $0.67. This has created a 14-day consolidation zone and played a role in driving the previous upside momentum.

However, there’s a red flag as the price has dipped below the 20DMA support, hinting at the potential for further downside movement. To put this in context, the last time XTZ fell below the 20DMA was on July 24, resulting in more than two months of price decline, with the divergence below the moving average peaking at a staggering -28% below the 20DMA on August 18.

In contrast, the 200-day moving average (200DMA) remains significantly higher, trading above the upper trendline at $0.84, and it has not been touched since April 29.

Turning our attention to the technical indicators, the Relative Strength Index (RSI) has been rising gradually, and it currently displays minor bullish divergence at an oversold reading of 47.80. Similarly, the Moving Average Convergence Divergence (MACD) shows minor bullish divergence at 0.001.

As things stand, Tezos seems to be looking for support around its current price level, with little indication of an imminent plunge. The indicators suggest that support is likely at this point.

Tezos’s Potential Price Scenarios

Despite the recent turbulence, Tezos remains poised to recover from its current position. According to the indicators, Tezos has a short-time frame upside target at $0.71, potentially yielding a gain of 7.36%. Conversely, there’s a downside risk that could push XTZ to $0.645, representing a potential 3.15% loss.

This leaves Tezos with a risk-to-reward ratio of 2.33, which emphasizes the more substantial upside potential.

While Tezos continues to grapple with the 20DMA range, it’s worth noting that savvy investors are exploring new opportunities through a Telegram-based GambleFi project, which offers staking APY returns that are outperforming the market. This adds an extra layer of intrigue to the Tezos ecosystem, making it a fascinating asset to watch in the midst of this crypto market whirlwind.

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About Victor Dsouza

Victor Dsouza is Crypto Journalist. He is keen to write about crypto tokens, crypto presale, you can follow him on twitter and LinkedIn.

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