• Tezos price underwent a third firm rejection over the weekend.
  • XTZ price set to trade back in search of support. 
  • Expect to see a drop back towards pivotal levels near $1.64.

Tezos (XTZ) price action has undergone a firm rejection over the weekend and as stated in a previous article on FXStreet, in which we warned about the risk of bulls dropping the ball on this rally and price action falling another leg lower, more downside could be on the horizon. Indeed , that scenario is already unfolding rapidly, with price action having faded 8% and looking to lose another 8% towards the first area of support. With global markets deteriorating a bit, more downside potential is present as it becomes clear that XTZ bulls have handed over the keys to bears.

XTZ price sees bulls losing the ball to bears

Tezos price action awakes after a very messy weekend where bulls, although warned, went for the easy money and started booking profits on their summer rally earnings. With that sell wave, a big fade occurred which is currently printing an 8% decline against the monthly R1 resistance level. Another leg lower of 8% is still pending as price action will look for support around the monthly pivot at 1.64, underpinned by the 55-day Simple Moving Average (SMA) as a key level of support.

XTZ price could even be at risk of imploding 30% once it pierces through the 55-day SMA and the pivotal R1 resistance level. Another leg lower would face support around $1.42 with the monthly S2 support level, which does not hold that much relevance. XTZ price action will come into the orbit of being attracted by gravity from the lowest level of 2022 on June 18, bearing a 30% negative profit-and-loss for bulls.

XTZ/USD Daily chart

XTZ/USD Daily chart

Seeing that the trading week already started with this setback and Tezos price action on the back foot, investors and traders could start to scoop up the altcoin to end the week on a positive note. That would mean that this time XTZ price action would test and finally break $1.96 to the upside and possibly the top, or break $2 as a psychologically important pivotal level. Traders who venture to stay in could see a return of roughly 25% as the next big level is near $2.20-$2.25 to the upside.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

Near protocol (NEAR) co-founder Illia Polosukhin stated in a social media post on Wednesday plans for NEAR to launch NEAR AI, a user-owned AI system that will allow users to build web3 apps without code on an end-to-end network.

More Near News

US House of Reps passes bill aiming to regulate cryptocurrencies

US House of Reps passes bill aiming to regulate cryptocurrencies

FIT21 bill received massive support as the House of Representatives voted to pass the bill on Wednesday. The White House and US Securities & Exchange Commission (SEC) Chair, Gary Gensler, expressed concerns about the potential impact of the FIT21 bill on investor protections in a statement.

More Cryptocurrencies News

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum (ETH) is trading sideways on Wednesday as BlackRock, Bitwise and Grayscale submitted their amended 19b-4s filings to the Securities & Exchange Commission (SEC). The agency has also begun conversations with issuers on S-1s applications.

More Ethereum News

As Ethereum spot ETF approval nears, these altcoins could explode

As Ethereum spot ETF approval nears, these altcoins could explode

It is not surprising that altcoins related to Bitcoin saw a major rally post-Bitcoin spot ETF approval. Likewise, tokens closely related to Ether could ride the ETF approval wave. Ethereum Classic, Pepe, Floki and other DeFi tokens could gain momentum as the ETH ETF approval deadline nears. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis

BTC

ETH

XRP