The XTZ/BTC pair dived below the $3 mark recently and this may be an indicative that the bears are heading towards the $2 mark. The down action saw the pair retraced to the 50.0% Fibonacci retracement level, as price swings between a previous swing high at $3.9 and low at $1. Tezos is currently changing hands at $2.87.
There’s possibility of movements in any direction. However, minor recovery has only managed to rise to the hurdle at $3.00, however, the immediate upside is capped by the 61.8% Fibonacci level.
As Tezos currently trades at $2.78, the upside of its technical analysis reveals a possible move towards the $3 mark again. Since its recovery from the March lows, prices have been contained within a potential price hike. In the event that a breakout occurs above the key $3 level, a further boost beyond the channel will mostly clear path towards $4 in the short term.
XTZ/USD Technical Picture
Tezos still maintains an uptrend in the long term but the price seems to be stuck in the short term. With a ranging market for about two weeks, a breakout to the bullish side is not likely within a short time from now.
As Bitcoin has been pushing higher and occasionally this does push up general belief in the smaller coins but not in the case of Tezos. There are still some possible uptrend on the technical side as the price is trading above both 55 and 200 moving averages.
The volume bar at the bottom of the chart below indicates the magnitude of participation in the market and as you can see its dire at the moment. The relative strength indicator is above the 50 mid-line which is positive but at the moment the signal line is slanting down.
The Relative Strength Index (RSI) has just left the overbought condition and is currently sitting around 62.21. This means a consolidation would cloud prices in the coming days. If this sell-off continues, resistance at the 50.0 RSI level is expected as buyers gear up for another assault which may push price to $3.
As sideways action dominates the XTZ/USD pair, the downside of the consolidation may push prices below the 50% Fibonacci retracement level. If this breakout comes into play, the extended bearish movement will expect anchorage at the channel support, the 100-day SMA ($2.33), and the 50-day SMA ($2.209). Additional areas to watch include $2.00 $1.50 and the major support at $1.50.