Tezos is heading south. XTZ currently trades at $1.61, following a 3.10% increase in its price overnight.
XTZ’s relative strength index and volume have declined and isn’t showing any signs of bullish movement.
As of press time the XTZ movement is no longer being referred to as an impulse wave. Tezos now appears to be moving in the opposite direction.
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Tezos Hints At Bearish Movement
The bearish streak has been obvious in Tezos price last week with early signs that the coin’s price will have the tendency to break through the ascending trendline.
Tezos broke the support line July 26. A surge in trading activity has led to a price rise that is evident right now. XTZ volume is still relative low plus the RSI isn’t giving away any bullish hints.
The bearish thesis can only be dispelled if the XTZ price falls below $1.61. So, if the bulls’ impetus forcibly pushes the Tezos price over this zone, then that’s the only time the price can shoot to a high of $1.65; which is roughly a 7% jump from its current price.
XTZ currently trades at $1.60 after a 3.10% overnight price pump. Despite the fact that XTZ has risen in price today, Tezos is still down 10.75% over the last few days.
According to CoinMarketCap, XTZ is still the 37ThThe largest cryptocurrency by market capitalization, or only ahead of HBAR. It happens to be located in the 38ThSAND is currently at the 36th place.Th place.
Even more, the 24 hour trading volume outlook for XTZ shows a decline of 30.94% (or $42,498,623)
Source: TradingView.com| Source: TradingView.com
XTZ Price Bound For A Major Retreat
XTZ Price will drop to $1.19. An abrupt correction is coming. Since the beginning of October, Tezos has consistently shown its bearish junction.
Due to extremely low buying pressure, XTZ was unable to maintain it at $1.62. It will then target $1.55 if it closes below 1.50.
The XTZ price frame is seen as forming a Flag-and-Pole pattern, which is intrinsically bearish. It appears that coins are advancing towards the $.70 resistance.
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The XTZ’s price is also below the Exponential Moving average (50-day EMA) at $1.67. A warning sign for bulls is the decrease in volume when the price goes up. Time and time again, the formation of Flag or Pole patterns is a sign that there will be a steep drop.
The support level for XTZ has been close to $1.56 on the hourly charts. The Bat pattern, which indicates a bullish trend and hints at a possible short-term inversion on the higher end of the market, formed. The upside target is $1.65, then $1.70.
The target would be $1.55 if there is a slight shift of bearish momentum.
Featured Image from Unsplash. Chart by TradingView.com