Tezos [XTZ] bulls reclaim $1.7, but should trad

Tezos [XTZ] bulls reclaim $1.7, but should traders expect a pullback now?

The slow trend reversal for Tezos began in mid-July when the price refused to go lower than $0.47.

Tezos has a strongly bullish outlook in the short-term and long-term after reclaiming a key resistance zone at $0.7. Traders should now be wary of deep pullbacks and liquidity hunts.

Tezos [XTZ] has gained 8.2% in the past 24 hours on the price charts. Coinalyze data showed that its Open Interest was up 51.2% in the same period.

Thus, the rally had intense speculative bidding recently, but it was also a warning sign of a move driven solely by the derivatives market.

The spot CVD has not trended higher, which reinforced the short-term concerns that the rally driven by speculative traders. This might see heightened volatility and deeper pullbacks, which could affect traders.