Tezos made it back into the top 10 cryptos by market cap; what's next?

Within the last eight weeks, Tezos surged nearly 147 percent to recently hit a high of $1.84.

The 360 percent rally that took place between March and May created the flagpole.

Despite the bullish outlook, XTZ could soon find an exhaustion point based on the TD sequential indicator.

It is worth noting that Tezos is currently fighting the significant level of resistance presented by the 100 percent Fibonacci retracement level.

A spike in the selling pressure behind XTZ could push it downwards to test the support given by the 78.6 percent Fibonacci retracement level at $1.52.

Breaking below it could ignite a further sell-off that takes this crypto to the 65 percent Fibonacci retracement level at $1.31.

Conversely, closing above the 100 percent Fibonacci retracement level may imply that the bullish impulse seen behind XTZ would continue.

The next levels of support are around the 113 and 127.2 percent Fibonacci retracement levels sitting at $2.05 and $2.27, respectively.

Tezos is facing significant resistance ahead. Based on a number of technical patterns, it seems like this cryptocurrency is bound for a correction before continuing its bullish trend.

A spike in volume may have the potential to invalidate the bearish signals and push Tezos into higher highs.