Table of contents
The descending triangle formed under the ongoing downtrend increases bearish pressure on the $2.89 support level. Will XTZ buyers withstand the pressure?
Key technical points:
XTZ prices rest at the $2.90 support level.The 50-day EMA promotes the lower high formation.The 24-hour trading volume of Tezos is $89 Million, marking a 38% rise.
Past Performance of XTZ
On 1st March, the XTZ coin price faced rejection at the new-upcoming resistance trendline resulting in the descending triangle pattern. The $2.89 support level creates the base for the triangle pattern, and overall the triangle accounts for a downfall of 35% last month. Finally, the price fills up the triangle indicating the breakout point arrival.
Source-Tradingview
XTZ Technical Analysis
XTZ coin price faces extreme selling pressure evident by the increase in trading volume as the altcoin faces rejection from the trendline. Thus, the chances of a bearish breakout resulting in a fall to $2.5 increases.
After achieving the bearish alignment, the crucial EMAs (50,100, and 200) maintain a falling trend. Meanwhile, the 50-day EMA moves along the resistance trendline and provides a consistent dynamic barrier.
RSI Indicator: The RSI slope maintains a sideways trend in the nearly oversold zone under the 14-day SMA influence. MACD Indicator: The MACD and signal lines continue to move flat after merging. Therefore, the divergence will generate a more precise signal.
In a nutshell, the XTZ technical analysis projects a bearish signal as the possibility of triangle breakdown increases.
Upcoming Trend
With the seller’s driven trendline and the highly bearish 50-day EMA, the XTZ coin price might crack the $2.89 support level and reach the next psychological support at $2.5. After that, however, an increase in trend momentum can fall to $2.11.
Conversely, the unlikely possibility of upside breakout could account for a 15% price jump to the 50-day EMA.
Resistance Levels: $3 and $3.45
Support Levels: $2.89 and $2.5
