XTZ Technical Analysis: Resistance Confluence Increases Friction
Key technical points:
Past Performance of XTZ
The XTZ/USD technical chart shows an uncontrollable bearish trend after the breakout of the $3 mark. However, the crucial support level of $1.66 helped sustain the downfall and end the downtrend with a double bottom pattern forming during the consolidation at the demand zone.
Source-Tradingview
XTZ Technical Analysis
The overnight surge in buying pressure inflates the XTZ price by 5.53% with a bullish engulfing candlestick and breaks the neckline at $1.90. Hence, the neckline breakout illuminates a buying spot and increases the number of breakout traders going long.
The long-term downtrend of the last few months has led the EMAs to achieve an inverse alignment with the 50 EMA, which provided the dynamic resistance.
As the slow uptrend finally gains momentum, the RSI rises within the nearly oversold zone line to approach the midline. Additionally, the increase in the underlying bullishness helps the RSI surpass the 14-day SMA line, increasing the probability of a prolonged uptrend.
The Stochastic indicator shows the K and D lines avoiding multiple crossover events in the overbought territory. Thus, the indicator indicates an increased chance of an uptrend above the $2 mark.
In short, XTZ prices find FOMO buyers lining up expecting a breakout, but the smart money awaits the price action confirmation.
Upcoming Trend
As the breakout becomes inevitable, the number of XTZ buyers will increase sharply, resulting in a price jump to $2.48. However, a bullish failure will drive the market value back to $1.66 with increased fallout possibility.
Support Levels: $1.66 and $1.50
Resistance Levels: $2 and $2.48
