Tezos has seen some strong price action in recent weeks, with its price facing some choppy trading throughout the past couple of days.
It appears that the cryptocurrency’s recent price action has become decorrelated from that seen by Bitcoin and the rest of the market, and is showing some striking similarities to that seen by Chainlink over the past few days.
Analysts are now widely noting that its strong market structure should be enough to propel it higher in the days and weeks ahead.
Traders seem to be taking notice of this, as XTZ open interest on popular trading platform Bitfinex recently soared to a fresh all-time high.
96% of this total open interest is composed of long positions – showing that traders are overwhelmingly confident that further upside is imminent.
Tezos Posts Strong Price Action as It Rests Above Key Support
At the time of writing, Tezos is trading up roughly 5% at its current price of $3.02. This is around the price at which the cryptocurrency has been trading throughout the past day.
This weekend, XTZ peaked at highs of $3.15 before facing a sharp selloff alongside Bitcoin and the rest of the market.
It ultimately dipped to lows of $2.80 before finding some significant support, and it has been ranging between these lows and highs of $3.10 ever since.
While speaking about its technical outlook, one analyst noted that its strong support at the lower end of this range has led to an influx of buyers who are now stepping in.
The crucial resistance it needs to break to explode higher sits between $3.15 and $3.80 – he claims.
“XTZ: Still nicely consolidating inside a range. Green zone holding as support and buyers are eager to step in there. Crucial resistance zone is the $3.15-3.18 area. A breakthrough of that level = test of $3.60-3.90.”
Image Courtesy of Michaël van de Poppe. Chart via TradingView.
Bitfinex Traders Overwhelmingly Long on XTZ
Tezos’ current technical strength is not going unnoticed.
Data shows that open interest for the cryptocurrency on Bitfinex just soared to a fresh all-time high.
Interestingly, 93% of this open interest is comprised of long positions.
As seen in the below chart offered by another analyst, this is a historic high for the cryptocurrency and suggests that certain large traders are expecting it to see massive near-term upside.
“XTZ OI on Bitfinex is 96% long with longs at a mega new ATH. 70% of that long OI was added in late July.”
Image Courtesy of Josh Olszewicz. Chart via TradingView.
Whether or not this helps lift Tezos higher or provides bears with fuel to spark a short squeeze remains to be seen.
Featured image from Unsplash. Charts from TradingView.
