When constructing a balanced portfolio, it can be beneficial to consider not only the largest cryptocurrencies but also smaller-cap assets that may present significant growth potential.

While Bitcoin and Ethereum are currently trading near their all-time highs, Tezos has declined by around 60% from last year’s peak, creating a potentially more favorable risk-to-reward profile.

Tezos technical analysis

XTZUSD - 1 Day Time Frame

Before identifying a possible entry setup, it is important to assess Tezos’ price flow. In July, the asset recorded an impulsive rally of more than 126%. Following this internal peak, the price began to retrace in what appears to be a corrective structure. This is evident as the duration of the decline has been considerably longer than the preceding upward move.

During this corrective phase, Sell-Side Liquidity was swept, which can serve as an initial indication of a possible continuation to the upside. A second condition that could support this outlook is a daily close above the resistance zone, the last area defining bearish supply. On the chart, this resistance has been highlighted in orange.

Tezos price target

If the daily candle were to close above this resistance, the buy-side setup could be considered more strongly confirmed, with potential targets aligned at the Buy-Side Liquidity levels. Should the price ultimately reach the final of these highlighted liquidity zones, it would correspond to an appreciation of approximately 140%.