Summary: Tezos [XTZ] bulls reclaim $0.7, but should traders expect a pullback now?

Tezos (XTZ) is currently riding a powerful bullish wave, exhibiting a strongly positive outlook for both the immediate and long term. The cryptocurrency has successfully breached a crucial resistance zone at $0.7, a level that previously posed a significant challenge since March. This recent surge saw XTZ climb an impressive 8.2% within 24 hours, accompanied by a staggering 51.2% increase in Open Interest, indicating intense speculative engagement. However, this derivatives-driven rally also carries a note of caution. The absence of a corresponding surge in spot buying (Spot CVD) suggests the momentum is heavily fueled by futures trading, potentially leading to increased volatility and sharp price corrections. Despite these short-term concerns, Tezos's underlying technical analysis paints a compelling picture. A clear bullish market structure break was identified on July 9th, followed by a consistent pattern of higher lows. Since this pivotal shift, XTZ has impressively gained 40% in value, firmly establishing its upward trajectory. Breaking past the formidable $0.7 supply zone represents a significant victory for Tezos bulls. Looking ahead, a potential retest of this newly conquered $0.7-$0.75 range could present an opportune buying entry for investors. Nonetheless, traders should remain vigilant; the Relative Strength Index (RSI) is currently deep in overbought territory at 84, hinting at an impending pullback. While the On-Balance Volume (OBV) confirms robust buying pressure, the speculative nature of the current rally necessitates careful navigation to avoid deep pullbacks and liquidity traps. Tezos is undeniably on an upward path, but smart, cautious trading strategies are essential to capitalize on its momentum.