Tezos Price In A Downtrend, XTZ/USD Stages Plunge Towards $2.40

Tezos is having its worst week ever in this quarter. The coin’s performance in this new week as the second quarter comes to an end has been the most challenging since the beginning of the quarter.

At the moment, Tezos is facing an inbound plunge that may direct its price towards the $2.40 area where Tezos hasn’t been in a while.

The XTZ/USD trading pair is currently changing hands at $2.58 after unfortunately, plunging below the midline of the Bollinger indicator to trade below the area.

Its market capitalization also plunges within the last 24 hours or so to about $1.90 billion and exchange volumes dived in a similar manner to $79.48 million.

Having failed the test at the middle line moving average support, prices are now trying to test the next support level at $2.50, the very bottom of the Bollinger band.

As of present, the Tezos price movement is seen to have formed a falling wedge pattern which may encourage a bearish breakout to lower points unimaginable.

Also read, Tezos Price prediction 2020 

XTZ/USD 4-Hour Price Chart

Tezos’s current price action is contained within the lower area of the Bollinger band indicator. Presently at $2.58, the bears are most likely to succeed in bringing it to the $2.50 level with little effort invested.

There has been a price consolidation between $2.58 and $2.65 which keeps the price from climbing further above. As the price is expected to return to the $2.65 level in order to test the resistance again, we may expect a bullish breakout. In such cases, prices may climb further to $2.70 in the near term.

However, if the bears succeed in touching the bottom of the Bollinger indicator, prices will fall to the $2.40 support area. Below this, additional support lies at $2.38 and then major support level at $2.35.

The Resistance Strength Indicator also lies directly below the 50.0 RSI level. Prices have tried to break above the level a couple of times but have failed in doing so. This may be an indication of strong resistance in the area, a condition that may encourage a bearish takeover.