Tezos Price Prediction: XTZ develops reversal pattern, targeting $2

Tezos price is bounded inside a descending parallel channel on the 4-hour chart.
The digital asset got rejected from a critical resistance level and might be poised for a pullback.

Tezos had a notable 10% rally in the past 48 hours, following Bitcoin’s price action, which has established a new all-time high. Unfortunately, Tezos price got rejected from a crucial resistance trendline and could be poised for a deeper pullback.

Tezos price turns bearish after significant rejection

On the 4-hour chart, Tezos price has established a descending parallel channel and got rejected from the upper trendline on December 17. Bears seem to be getting enough continuation after the rejection, which indicates it is healthy.

XTZ/USD 4-hour chart

So far, the 100-SMA has acted as a support level, and a breakdown below this point can quickly drive Tezos price towards the middle trendline of the channel at $2.2 and as low as the lower trendline at $2.

On the other hand, if bulls can defend the 100-SMA level at $2.25, Tezos price is most likely going to climb back towards the upper boundary of the descending parallel channel at $2.4.

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