- Tezos is holding firmly to the immediate support provided by 50 SMA and the ascending triangle hypotenuse.
- A reversal to the primary support at $1.8 seems imminent, especially with the upside capped by the 200 SMA.
Tezos, like many other altcoins in the market, is having a difficult time catching with Bitcoin’s bullish cycle to a new yearly high at $16,500. Instead, XTZ struggles to defend short term support to focus on breaking the immediate resistance at $2.1. The cryptoasset was recently rejected at $2.2 for the second time in November, highlighting the intense pressure ahead.
Tezos on the verge of a substantial breakdown
The $1.5 billion digital asset is changing at $2.09 after losing a subtle 0.9% of its value in the last 24 hours. XTZ attracted a trading volume of $167 million in the same period. Marginally above the prevailing market value, the 200 Simple Moving Average caps price movements. More resistance is anticipated at $2.15 and $2.2.
Tezos is also trading within the confines of an ascending triangle. The pattern is formed by connecting a series of higher highs using a trendline and a horizontal line drawn along the swing highs. Usually, traders watch out for breakouts either to the downside or upside.
A typical ascending triangle pattern is interpreted as a continuation pattern because the price tends to break out in the same direction of the trend that existed before the triangle formed.
XTZ/USD 4-hour chart
As for Tezos, a breakdown is anticipated below the triangle if the short term resistance at the 200 SMA remains intact. The 50 SMA also provides immediate support alongside the ascending trendline. Price action on the downside might trigger declines to the 100 SMA at $2. Continued breakdown may see XTZ/USD retest the primary support at $1.8.
The hourly chart validates the downward momentum after shinning a light on the immense support ahead of XTZ, mainly created by the 100 SMA and the 50 SMA. A building bearish momentum eyes the immediate support formed by the 200 SMA. Overshooting this short term support could trigger losses under $2. The downward slope of the Relative Strength Index gives credence to the bearish outlook.
XTZ/USD hourly chart
The bearish narrative will be jeopardized if XTZ/USD closes the day above the 200 SMA. On the downside, the triangle support in conjunction with the 50 SMA must also hold. On the upside, trading above the next resistance at $2.15 could call for more buy orders, generating enough volume for a breakout above the x-axis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogecoin Price Forecast: Bulls deploy $355M in DOGE longs amid Gensler exit confirmation
Dogecoin price crossed $0.40 on Friday, after a weeklong consolidation that saw DOGE tumble 13% from last week’s peak. Derivative market reports link the DOGE rally to Gary Gensler’s imminent exit.
Crypto Today: XRP gains 10%, Cardano, XRP, and DOGE price rallies, delay Bitcoin’s $100K breakout
The global cryptocurrency sector pulled $230 million capital inflows on Friday, as markets reacted positively to news of SEC Chair Gary Gensler’s imminent exit.
Cardano Price Forecast: ADA could rally by another 30% as on-chain data signals bullish sentiment
Cardano (ADA) surged 24% to $0.98 on Friday following rising weekly active addresses, increased open interest and spot buying pressure.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.