• Tezos rebounded from the technical support of $2.17.
  • The further recovery may be limited by a strong resistance area above $2.4.

Tezos (XTZ) is the 19th digital asset with a current market capitalization of $1.8 billion and an average daily trading volume of $177 million. The native token of the blockchain platform based on smart contracts technology bottomed at $1.78 on November 4 and has been gaining ground steadily ever since. XTZ stopped within a whisker of $3 on November 25 before retreating to $2.4 by the time of writing. 

The coin has gained over 3% in the past 24 hours snd 1.8% on a week-to-week basis. 

XTZ recovery stalled

As FXStreet previously reported, XTZ/USD broke below the critical support created by a lower line of a short-term ascending channel. The development worsened the short-term technical outlook and eventually resulted in XTZ/USD move towards the recent low of $2.17. 

While XTZ managed to re-gain some ground, the further recovery may be limited as the price bumped into a stiff supply area of $2.4. This barrier has been verified as resistance on numerous occasions since November 28.  a sustainable move above this area is needed for the upside to gain traction with the next focus on the psychological $3.

XTZ/USD 1-hour chart

XTZ/USD 1-hour chart

On the downside, the coin is supported by the upside trendline from November 26 low at $2.3. Once it is out of the way, the sell-off will likely gain traction with the next focus on $2.17, followed by $2.

XTZ/USD daily chart

XTZ/USD daily chart

From the longer-term point of view, the above-mentioned support of $2.17 is reinforced by the daily EMA50, meaning that this area has the potential to stop the bearish assault and trigger a new upside wave with the initial target at $2.6 (daily EMA200).

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.

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