Tezos Price Analysis: Death cross on 4H chart warrants caution for XTZ bulls
|- Tezos pauses its rebound from three-week lows of $2.0433.
- The token is poised for a potential sell-off, with death cross on the 4H chart.
- RSI points south while below the 50 level, suggesting caution.
Tezos (XTZ/USD) has paused its rebound from three-week lows of $2.0433, now consolidating the downside sub-$2.15 levels.
The bulls have turned cautious after a death cross got confirmed on the four-hour chart during Friday’s European trading.
Tezos: Four-hour chart
The death cross is a bearish crossover, with usually the 50-HMA cutting the 200-HMA from above. It is considered as a tipping point for a potential sell-off.
The coin, however, maintains its range play within a two-week-old descending wedge, with the upside attempts seen capped by the bearish 50-simple moving average (SMA) at $2.2196.
Further north, the convergence of the 200-SMA and descending trendline resistance at $2.2500 will be the level to beat for the bulls.
The next relevant upside target is aligned at the downward-sloping 100-HMA of $2.2932.
On the flip side, should the bulls fail to defend the 21-SMA cushion at $2.1178, a quick drop towards the descending trendline support at $1.9824 could likely be on the cards.
The Relative Strength Index (RSI) has turned south at 46.92, holding below the mid-line, pointing towards a shift in the bearish sentiment.
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