The Tezos price is on track for its best day in 2021 on news that gaming giant Ubisoft will use the blockchain for its new NFT platform.
Tezos (XTZ) is up over 30% at $5.454 Tuesday, extending the gains from Saturday’s flash-crash lows to 70% and reversing this month’s loss. The frenzied buying (almost $1b trading volume) has inflated XTZ’s market cap to $4.75 billion, lifting Tezos’ crypto ranking to #39, behind The Sandbox.
The partnership, which will see Ubisoft launch its Quartz NFT platform on Tezos, is undoubtedly a coup for the project. As a result, buyers rushed to gain exposure to the XTZ token, which was trading 55% below its ATH at the start of the day. However, despite the deal’s potential, the Tezos price faces overhead resistance, which may cap the near term gains. On the other hand, if the price clears resistance, a return to the highs is possible.
The daily chart shows the Tezos price has cleared the 200-Day Moving Average at $4.655 but is pulling back from trend resistance at $5.545. However, the Relative Strength Index is breaking higher, highlighting the positive momentum. On that basis, if XTZ clears trend resistance, it should extend to the 100-DMA at $6.072. Furthermore, a close above the 100-DMA clears the path towards the $9.171 all-time high.
I expect XTZ to test the 100-DMA in the coming sessions, as long as the token remains above the 200-DMA. But a close below would suggest the bullish momentum has given way to bearish sentiment. On that basis, a close below $4.656 invalidates the optimistic view.
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This post was last modified on Dec 07, 2021, 23:12 GMT 23:12