Tezos Market Update: XTZ/USD remarkable rally stalls under $4.00, what next?
|- Tezos bullish momentum within key ascending channel hits a wall slightly above $3.80.
- XTZ/USD free-falls but embraces support at $3.60; buyers still focused on breaking resistance at $4.00.
Tezos consistently falls after an impressive price that topped $3.80. A monthly high was formed at $3.88 before a reversal came into the picture. The Asian session on Monday has been characterized by increased selling pressure with losses hitting two key levels: The ascending channel support and a minor drop under the short term support at $3.60.
In the meantime, XTZ/USD is teetering at $3.61 following a minor reversal from the dip. The bullish momentum building at the time of writing depends on the capacity of the channel support and the $3.60 level to hold regardless of the reversal printed from $3.88.
From a technical perspective, Tezos is still in danger and could fall further. For instance, the MACD reinforces the bearish campaign with its vivid negative divergence. Its position above the midline, however, highlights that buying pressure is still present.
The RSI also dived from the overbought areas but seems to have embraced support above 50 (average level). A reversal towards 70 would signal a strengthening bullish grip. Besides, the wide gap printed by the 50 SMA above the 200 SMA in the 1-hour range hints that buying power is available but not enough to immediately bring down the resistance at $3.80 and $4.00 respectively.
XTZ/USD 1-hour chart
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