Tezos Market Update: XTZ/USD comes crumbling down after hitting a wall at $3.16

Tezos recently broke out in incredible gains to the extent of taking down the resistance at $3.00. Prior to the breakout, the losses witnessed in July had embraced support at the 200-day SMA. The reversal that ensued remained steady, breaking above a six-month descending trendline. This put an end to the downtrend and elevated XTZ as one of the most improved altcoins.

As the Asian session nears the end on Tuesday, Tezos has embarked on a gain-trimming exercise. From monthly highs of $3.16, XTZ has plummeted to $2.7563 (prevailing market value). The crypto’s immediate downside is protected by the descending trendline as well as the 50-day SMA.

Technically, Tezos is in the hands of the bears with the RSI pointing sharply to the south. As long as the indicator continues with the negative gradient, declines will dominance the XTZ market.

On the other hand, if Tezos bulls hold above the 50-day SMA, a reversal could soon come into the picture. Besides, the MACD’s position above the midline shows that buying pressure has not been ousted entirely. For now, holding above the tentative support at $2.75 could be the saving grace the bulls need to avert losses targeting $2.50.

XTZ/USD daily chart