XTZ Technical Analysis: Double Bottom Hints 30% Prices Jump

Table of contents

  1. Past Performance of XTZ
  2. XTZ Technical Analysis 
  3. Upcoming Trend

XTZ coin price creates a double bottom pattern at $2.90 support level with a neckline at $3.5, teases a breakout rally to the 200-day EMA.

Key technical points:

XTZ coin price takes support at 50-day EMA.The Stochastic RSI gives an untimely bullish crossover.The 24-hour trading volume in the Tezos Token is $1.13 Billion, marking a 152% rise. 

Past Performance of XTZ

As per our last Tezos technical analysis, the XTZ coin price showcased a bullish recovery from the $2.90 support level resulting in a jump to $3.50. However, the rejection from the 50-day EMA reverted the rally to $2.90. Nonetheless, the bulls turn the lemon into lemonade with a double bottom pattern creation.

TradingView Chart

Source-Tradingview

XTZ Technical Analysis 

XTZ coin prices may generate a buy signal with the $3.50 neckline breakout, resulting in a rally above the $4 mark. However, the recent rejection of 5.6% creates a bearish engulfing candle, sabotaging the bullish sentiment and may give a fallout of the bullish pattern.

The crucial daily EMAs maintain a downtrend as the 50-day EMA carries an active deterrent for buyers. However, the collapse of the 50-day EMA will result in a price jump to the 200-day EMA. 

RSI Indicator: The RSI slope shows a sideways trend due to the failure of rising above the 50% mark. Moreover, the bullish divergence is crystal clear in the double bottom pattern, increasing an upside breakout possibility. 

Stochastic RSI Indicator: The declining K and D lines cross below the 50% mark, but the buyers stepping in at $2.90 brings an early bull cycle. However, the limiting spread undermines the crossover and hints of a fallback.

In short, XTZ technical analysis keeps a neutral aura as the reversal in the bullish pattern makes the price chart choppy.

Upcoming Trend

XTZ coin price struggles to rise higher in the bullish pattern and reach the resistance confluence of the 50-day EMA and the neckline at $3.50. Therefore, a potential closing below the $2.90 support level will result in a price decline to $2.75.

Support Levels: $2.90 and $2.75

Resistance Levels: $3.5 and $4.15

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