Tezos has tested the resistance level at $3.0 for at least three times within the last 7 days. However, the top cryptocurrency failed to surpass this critical level every time it launched a bull run to break the level.
The $3.0 area has been established as a major resistance level to watch. For the past week, the bulls have not been able to garner the energy required to bring prices above the level. Although prices would undergo alternate buying and selling pressures, the bears seem to have had a bit of luck in the past by dragging prices towards the support at $2.6.
In the last 24 hours, however, Tezos mirrored Bitcoin in gaining against its USD pair. Recording 7% in the timeframe, this move encouraged the bulls once again, to try to penetrate the long-held resistance at the critical $3.0 level. As the previous stories ended, this time again, we see a brutal market take over which drags prices further away from any temporary victory.
At the time of writing, Tezos is changing hands at $2.86 amid $2.03 billion of market capitalization and $113.33 million of trading volumes.
XTZ/USD 4-Hour Price Chart
On the 4-hour price chart, XTZ is seen to have surged through the 0 Fibonacci retracement level towards a $3.0 mark. However, as the bulls weaken in momentum, selling pressure sets in to provide a little pullback to the $2.86 level.
The formation of a Doji candle within the last three candle printings still validates the possibilities of the market to go either way in the near term. If the sellers keep the momentum that has dragged price downwards, we may see lower prices within the next day.
Also, the Resistance Strength Index is shown to be returning from the overbought condition at 70.0. Currently tethering at the 60.0 level, it is highly probable that sellers keep control of the markets for a delayed period. As the indicator approaches 50.0 level, prices may respond quite rapidly to touch $2.75 at the 23.6% Fibonacci retracement level.