Tezos Price Analysis: Repeated rejections at key resistance level prevents significant growth

On October 8, Tezos successfully charted a morning star pattern and rose from $2.063 to $2.40 over the next six days. Following that, XTZ has met heavy rejection at the 50-day SMA and has been on a downtrend ever since and is currently trading for $2.22. If the buyers fail to flip the 50-day SMA ($2.30) from resistance to support, you can expect the price to drop to the $2.06 support line.

XTZ/USD daily chart

Looking into the four-hour chart, one can see that the price has currently lost steam at the $2.25 resistance barrier and is consolidating horizontally above the 100-bar SMA ($2.20). The “Ethereum killer” is now sitting on top of a healthy stack of support levels (100-bar, 50-bar and 200-bar SMAs). The downside is effectively capped off at the 200-bar SMA ($2.18).

XTZ/USD 4-hour chart

The Flipside: Can the bulls take back control?

The XTZ daily chart shows us that the market momentum is still bullish. If the buyers gain enough steam, they can potentially break past the 50-day SMA ($2.30) and aim for the 200-day SMA ($2.70). Another factor that supports this potential bullish outlook is the coin’s social volume. Santiment’s social volume shows a lack of significant spike on the chart, so FUD hasn’t caused the recent price decline.

XTZ social volume

Key price levels to watch

For the bears to stamp their authority on the market, they will need to take the price down to the $2.06 support line. However, the 4-hour chart shows us that the downside could be capped at the 200-bar SMA ($2.18).

The buyers can salvage the issue by quickly flipping the 50-day SMA ($2.30) from resistance to support. This will give them the license to aim for the 200-day SMA ($2.70).