Tezos price at inflection point, as XTZ decides between a 16% rally and 13% crash
- Tezos price has crashed 14% in the last three days as altcoins follow Bitcoin’s footsteps.
- A bounce off the $1.39 to $1.55 demand zone could catalyze a 16% rally to $1.78
- A daily candlestick close below $1.39 will invalidate the bullish outlook and potentially trigger a sweep of $1.33.
Tezos price has seen a massive sell-off over the last 24 hours, and the reason can be attributed to Bitcoin bears influencing the whole crypto market. Like XTZ, many altcoins have suffered a similar fate and now find themselves at crossroads – will they fall further or find their feet and attempt a recovery rally?
Tezos price at a make-or-break point
Tezos price was on a bull run after setting a swing high at $1.67 on August 25 and forming a base around $1.40. This development was followed by a quick 24% ascent, which created a higher high at $1.75. This bullish market structure shift suggested that the buyers were back and likely to propel XTZ higher.
The 14% sell-off has pushed Tezos price into the $1.39 to $1.55 demand zone. Ultimately, this retest should trigger a bullish move from XTZ that propels it by 16% to fill the imbalance at $1.78.
Investors can opt to open a long position at $1.55 and book profits at $1.78. In some cases, this Tezos price run-up could extend to $1.82, which is the midpoint of the $1.36 to $2.28 range.
XTZ/USDT 12-hour chart
On the other hand,Tezos price could suffer a spike in selling pressure that knocks XTZ lower and could ruin buyers leaving them trapped. If Tezos price produces a daily candlestick close below $1.39, it will create a lower low and invalidate the bullish thesis.
This development could see XTZ crash lower and sweep the equal lows formed at $1.33.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
