Tezos Price Analysis: XTZ Fell 23% This Week; What’s Next?

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Published 53 mins ago

Tezos price analysis indicates a corrective pullback. XTZ price has been in the short-term uptrend till August 17. After forming a double top near $2.06, the pair retraced lower and fell 23%.

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As of press time, XTZ/USD is trading at $1.06, up 1.74% for the day. The 24-hour trading volume of the coin fell more than 36% to $38,417,085 according to CoinMarketCap.

  • Tezos price managed to trade higher with minute gains.
  • However, the price fell more than 23% in the week.
  • A daily candlestick below $1.60 will bring more losses.

Tezos price trades with caution

XTZUSDT Weekly
Source: Trading view

On the weekly chart, after testing the low of $2.10, the price had made a high of $9.2. The price recorded an upside of more than 350%.

However,  on May 16, 2022, the price broke the support of nearly two years of $2.0 and gave a closing below this level on the weekly chart, & then started to fall toward $1.22.

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This week, the price tested the $2.0 level once again, but couldn’t sustain the gains.  The bull faces heavy selling pressure near the level, which was once acting as a support.

The price is taking resistance of the 20-day exponential moving average. Along with a 61.8% Fibonacci retracement, which will act as immediate resistance for this week.

Now, if the price on the weekly chart, closes below $1.50, then there is a high probability of the price going up to its recent swing low, which is between $1.2 to $1.4. 

XTZUSDT Daily 1
Source: Trading view

 On the daily chart, the XTZ  recently gave a breakdown of a bearish “Flag & pole” pattern, indicating weakness around the overall look, along with a clear break of the 50-day exponential moving average. 

XTZ’s price broke the pattern’s support level and gave a bearish breakdown. The volumes were declining, with the rising price of an XTZ, which implies a worry for the bulls. When the market is rising while volume is declining, big money is not the one buying, more likely slowly exiting positions.

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According to this pattern, The expected fall in XTZ price could fall up to $1.33. To find targets for Flag Pattern, the Fibonacci Extension indicator is used, which gives us more than 70% accurate targets. 

The nearest support is the swing low, which is $1.51, whereas the nearest resistance could be found at $1.70. There is a higher probability of the price breaking the support level. “Sell on rising” opportunity is the best course of plan we can go with. 

On the other hand,  a sustained buying pressure above the $1.72  level could invalidate the bearish outlook. And the price can move toward $1.90.

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XTZ  looks bearish on all time frames. Below $1.55  closing on the daily time frame, we can put a trade on the sell side. 

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Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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