XTZ Technical Analysis: Will Bears Break The Consolidation Range?

The XTZ price action displays a consolidation range between the $1.40 and $1.68 support levels. Moreover, the price action shows a bearish pattern developing with a neckline at $1.40 that can lead to a prolonged correction phase. So, should you consider booking profits before the bullish dominance falls?

Key Points:

Source-Tradingview

XTZ Technical Analysis

The XTZ price displays the bearish reversal within a consolidation range from the overhead resistance at the $1.68 mark, reaching the $1.40 bottom support. Moreover, the increase in higher price rejection candles reflects an increase in selling pressure.

After the sharp fall of 15% within a week, the bearish influence over the technical chart increases and teases a bearish breakout. Moreover, the growing bearish power fuels the downtrend in the 50 and 100-day EMA. 

Coming back to the price action, the head and shoulder pattern arising within the consolidation range has a neckline at $1.40. However, the increased selling pressure can result in a breakdown before the right shoulder formation. 

Hence, the Tezos prices can drop to $1.26 if the bullish dominance at $1.40 falls. Therefore, the sellers can find an entry spot at the $1.40 breakout.

However, if the prices break sustain above $1.40, a bull cycle to $1.68 may restart. 

Technical Indicator

The downsloping RSI slope crosses below the halfway line and presents a bearish divergence reflecting an increase in the underlying bearishness. Moreover, the increasing bearish gap between the MACD and signal lines indicates sustained selling activity. 

Therefore, the technical indicators oppose the price action analysis and forecast a breakout possibility. Hence, XTZ sellers must await the 50-day EMA breakout.   

Resistance levels- $1.5 and $1.68

Support levels-  $1.40 and $1.26