Tezos [XTZ] Surges 8.2% Breaching $0.7 Resistance

Tezos [XTZ] has recently surged past the $0.7 mark, marking a significant milestone for the cryptocurrency. This price movement has been driven by a strong bullish momentum, with the cryptocurrency gaining 8.2% in the past 24 hours. The breach of the $0.7 resistance level, which has historically been a point of contention, suggests that bulls are gaining control of the market. However, traders are advised to exercise caution, as deep pullbacks and liquidity hunts are common after such rapid price increases.

The recent rally in Tezos [XTZ] has been intense, with speculative bidding driving the price higher. This is evident in the 51.2% increase in Open Interest over the past 24 hours, as reported by Coinalyze. However, this also serves as a warning sign, as the rally appears to be driven solely by the derivatives market. The spot CVD has not trended higher, reinforcing concerns that the rally is speculative and could lead to heightened volatility and deeper pullbacks.

Despite the short-term concerns, the long-term outlook for Tezos [XTZ] remains bullish. The 1-day chart shows a bullish structure break on the 9th of July, with XTZ setting higher lows since mid-July. This bullish market structure break has seen XTZ gain 40% in value over the past ten days, breaching the $0.7 resistance zone that had previously held since March. A retest of this supply zone could offer a good buying opportunity for traders.

However, traders should be mindful of the RSI on the 1-day chart, which is currently at 84, indicating overbought territory. This is an early sign that traders should consider a pullback scenario. The OBV shows buying pressure on Tezos in recent days, suggesting that a retracement toward $0.7-$0.75 could offer a good buying opportunity. Traders should navigate the market with caution, being prepared for the possibility of a pullback as the market seeks to test the new support levels established by the recent price surge.