Tezos price drops 10% and needs to hold crucial level to resume uptrend
- Tezos price is up by 44% since January 2 and has peaked at $2.8.
- The digital asset plummeted in the past 12 hours, losing more than 10% of its value.
Tezos had a massive breakout on January 2 after trading sideways for weeks. The digital asset peaked at $2.8 on January 7 before plummeting down to $2.46, the current price. Bulls need to defend a crucial support level to avoid further downside action.
Tezos must defend $2.25 to resume uptrend and avoid crashing
The 10% loss in the past 12 hours should be considered healthy given the magnitude of the previous run. Now, the digital asset is dropping faster towards a significant support level on the 12-hour chart.
XTZ/USD 12-hour chart
On the 12-hour chart, the most important support level is the 26-EMA which is located at $2.25. Tezos price is quickly dropping towards it and bulls need to defend it at all costs to resume the uptrend and aim for a higher high above $2.8.
XTZ/USD daily chart
However, on the daily chart, this rejection is really significant as it seems Tezos has potentially established a triple top at $2.74. This can be a deadly pattern with the ability to push Tezos price down to $2 in the short-term.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
