Tezos (XTZ) could hit $2.4 after a steady relief rally

Tezos (XTZ) has managed to establish a decisive upward trend as we end a troubled May in the crypto market. The coin appears to have significant upward momentum and will likely report more gains over the coming days. Here are some of the highlights:

• Tezos has managed to regain the crucial $2 support

• Consolidation around this price is happening right now.

• XTZ will likely surge past $2.4 before any significant pullback

Data Source: TradingView 

Can XTZ maintain this uptrend for long?

A rise above $2 is a clear sign that indeed a prolonged recovery runs for XTZ could be possible. In fact, if bulls can push the price action above $2.4 and keep it there for a few days, we could see XTZ add nearly 50% in early June. Besides, XTZ is coming from a period of intense sell-off during the first half of May. At one point, the coin bottomed at $1.4, the lowest it has been in 2022.

But we are seeing incredible recovery. XTZ has gained around 50% from its lowest price this year and appears to be headed for another 50% bounce. Nonetheless, this steady uptrend also suggests that XTZ is due for a correction. 

However, we do not think this will happen anytime soon. In fact, XTZ will likely surge past $2.5 before some dip buyers start to cash out. The coin will however need to keep the price above $2 for this bullish setup to remain relevant.

XTZ – The short-term play

There is decent short-term play for XTZ buyers right now. The coin is hovering slightly above $2 which is an ideal entry point. 

Buyers who enter at this price can hold XTZ for a few days and exit when the price nears $2.4. However, if the coin fails to close the day at $2 or above, wait for the next consolidation phase.