XTZ Technical Analysis: Bear Cycle Scares Buyers At $1.66
Table of contents
Key Technical Points:
Past Performance of XTZ
As predicted in our previous analysis, the bull cycle within the rising channel pattern surged the XTZ price by 20% to reach the overhead resistance trendline. Moreover, the bullish reversal cracks above the 100-day SMA and the $1.66 mark. However, the bullish rally fails to exceed the resistance trendline resulting in a bearish reversal struggling to take support at the 100-day SMA.
Source - Tradingview
XTZ Technical Analysis
Currently, the XTZ technical chart shows a bearish engulfing candle undermining the uptrend last week and warns of a retracement to retest $1.66. Hence traders can find short-term selling opportunities at current market prices.
As the Tezos market price struggles to sustain about the 100-day SMA, the 50-day SMA maintains a diagonal uptrend moving along with the support trendline.
The daily-RSI slope sustains above the halfway line, but the recent dip below the 14-day average line reflects an increase in underlying bearish sentiments. Moreover, the fast and slow lines in the MACD indicator give a bearish crossover increasing the likelihood of a downtrend continuation.
In a nutshell, the XTZ technical analysis maintains a negative outlook for the upcoming trend as the selling pressure increases.
Upcoming Trend
If the XTZ price trend sustains the selling pressure, the market value may soon breach the 100-day SMA to test the 50-day SMA at $1.61. However, the bullish reversal from the supporting SMA might result in a price jump to the resistance trendline close to the psychological mark of $2.
Resistance Levels: $1.8 and $2
Support Levels: $1.66 and $1.50