- Tezos price dropped below $3
- The trend is very bullish
- Tezos will have to endure selling pressure until the bulls gain enough energy to run again
Tezos, unfortunately, couldn’t hold steady above the $3 mark before another bearish attack caught up with its price. It appears the bull run that escorted its price to the $3.08 mark on June 2, 17:30 hours UTC was short-lived and now seems exhausted. As prices fall below $3, a bear market has overwhelmed Tezos as market buyers take a break from the struggle.
At the moment, XTZ/USD is trading at $2.92 and market capitalization dropped to $2.14 billion. While 24 hours exchange volumes hover around $79.68 million, in the last 24 hours, Tezos price dropped by almost 3%.
All indications point to a bearish market in the near term. Although prices have tried to penetrate the 0.5 Fibonacci retracement level at $2.89 the bulls appear to have a stronghold of the price vicinity.
However, the bulls are only on the defensive since the last 24 hours with no major price assault towards higher heights. The 38.2% Fibonacci retracement level hasn’t been tested in the last 20 hours and prices are unlikely to consider moving up anytime soon.
XTZ/USD 4-Hour Chart
On the 4-hour chart, XTZ/USD first failed the test at the 38.2% Fibonacci level on June 5, 05:30 hours UTC. Further price losses are higher probably in the near term. Having failed to find support at $2.93, the next level of support to watch is the $2.89 level which lies on the 0.5 Fibonacci retracement level.
The 9-period Moving Average (M9) is trending above 5 bearish candles as the M9 acts as a major resistance level at the 23.6% Fibo level. This confluence of indicators will pose a serious threat to the market buyers in case the buyers launch a counter-attack. Above all, a plunge below the 0.236 fibo level is highly consequential to future prices. We may see Tezos testing the long-held support at the 61.8% fib level (2.85) which was rejected on June 1.
Also, the Resistance Strength Indicator (RSI) has dropped below the midpoint at 50.0. Currently testing the 40% level, a plunge below this may ride us through the oversold condition at 30. Any further bearish assault will see Tezos testing support around $2.6 as the trend is overly bearish in the short term.