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The XTZ price action shows a bear cycle within a rising channel in the daily chart teasing a potential downfall to test the 50-day SMA.
Key Technical Points:
The Tezos (XTZ) price jumped 54% within the rising channel pattern before the recent bearish reversal.The bearish reversal challenges the bullish support of the 100-day SMA.With a market cap of $1.60 billion, the intraday trading volume of Tezos has decreased by 5.08% over the last 24 hours to reach $40.01 million.
Past Performance of XTZ
As predicted in our previous analysis, the bull cycle within the rising channel pattern surged the XTZ price by 20% to reach the overhead resistance trendline. Moreover, the bullish reversal cracks above the 100-day SMA and the $1.66 mark. However, the bullish rally fails to exceed the resistance trendline resulting in a bearish reversal struggling to take support at the 100-day SMA.
Source – Tradingview
XTZ Technical Analysis
Currently, the XTZ technical chart shows a bearish engulfing candle undermining the uptrend last week and warns of a retracement to retest $1.66. Hence traders can find short-term selling opportunities at current market prices.
As the Tezos market price struggles to sustain about the 100-day SMA, the 50-day SMA maintains a diagonal uptrend moving along with the support trendline.
The daily-RSI slope sustains above the halfway line, but the recent dip below the 14-day average line reflects an increase in underlying bearish sentiments. Moreover, the fast and slow lines in the MACD indicator give a bearish crossover increasing the likelihood of a downtrend continuation.
In a nutshell, the XTZ technical analysis maintains a negative outlook for the upcoming trend as the selling pressure increases.
If the XTZ price trend sustains the selling pressure, the market value may soon breach the 100-day SMA to test the 50-day SMA at $1.61. However, the bullish reversal from the supporting SMA might result in a price jump to the resistance trendline close to the psychological mark of $2.
Resistance Levels: $1.8 and $2
Support Levels: $1.66 and $1.50