Tezos Price Analysis: Death cross on 4H chart warrants caution for XTZ bulls
- Tezos pauses its rebound from three-week lows of $2.0433.
- The token is poised for a potential sell-off, with death cross on the 4H chart.
- RSI points south while below the 50 level, suggesting caution.
Tezos (XTZ/USD) has paused its rebound from three-week lows of $2.0433, now consolidating the downside sub-$2.15 levels.
The bulls have turned cautious after a death cross got confirmed on the four-hour chart during Friday’s European trading.
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Tezos: Four-hour chart
The death cross is a bearish crossover, with usually the 50-HMA cutting the 200-HMA from above. It is considered as a tipping point for a potential sell-off.
The coin, however, maintains its range play within a two-week-old descending wedge, with the upside attempts seen capped by the bearish 50-simple moving average (SMA) at $2.2196.
Further north, the convergence of the 200-SMA and descending trendline resistance at $2.2500 will be the level to beat for the bulls.
The next relevant upside target is aligned at the downward-sloping 100-HMA of $2.2932.
On the flip side, should the bulls fail to defend the 21-SMA cushion at $2.1178, a quick drop towards the descending trendline support at $1.9824 could likely be on the cards.
The Relative Strength Index (RSI) has turned south at 46.92, holding below the mid-line, pointing towards a shift in the bearish sentiment.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
