Tezos price was marginally up in early hours of trading on Thursday, as it made 24-hour gains of 0.55% to trade at $6.35. The XTZ token has been trading sideways for the last one week after being on a downtrend for the entire October.
In the meantime, Tezos has gained a valuable endorsement, following the decision by Red Bull Racing to list its NFTs on the platform. That may not create enough momentum to turn things around quickly for XTZ, but it will give valuable publicity.
Over the past 72 hours, Tezos has made small gains, all of which have been under 1%per 24-hour cycle. Nonetheless, XTZ holders are keen on the possibility of a breakout to the upside, encouraged by rising trading volume. At the time of writing, the 24-hour traded volume for XTZ was up by 39%. In addition, the price was up by 5.1% over the past 7 days. Investors will be hoping that the market momentum strengthens further to increase prospects of a breakout to the upper side.
The Tezos price pattern has in the past eight days formed a symmetrical triangle, with the price heading sideways. The RSI has been relatively weak, reading below 50 for the past six days. This is likely to support continued sideways trading if the momentum does not rise or fall significantly. For the price to break out of the current range the buying momentum would have to be strong enough to push the price past the resistance at $6.77. That would result in a sustained upward price action.
Alternatively, the breakout could head downward. In that case, the bears would need to weaken the momentum enough to breach the first support at $5.86. That could set in motion further losses, which could establish the second support at $5.52.