- Tezos price successfully tests the May low after a 19% plunge on June 21.
- 2019 trend line tested again, marking the first time since December 2020.
- Bearish Death Cross pattern activated on June 27 creates a new obstacle for the emerging XTZ rally.
Tezos price is attempting to rebound from the second test of the May low in five days, but the bid has not been overwhelming, reflecting a tentativeness to engage XTZ while altcoins remain trendless. However, if a strong volume profile reinforces price strength, the digital token has the support to rally almost 30% from price at the time of writing.
Tezos price trapped in the same current as other altcoins
Tezos price fell 75% from the May 7 high of $8.41 to the May 23 low of $2.42, matching the average decline for the altcoins. Interestingly, XTZ did not trigger an oversold reading on the daily Relative Strength Index (RSI), and it did not reach an oversold condition during last week’s test of the May low. The failure magnifies a lack of panic and could partially explain the lack of thrust accompanying the low.
Nevertheless, the successful test of the May low and the 2019 trend line establishes solid support, thereby justifying some optimism about Tezos price intentions, regardless of the lack of outsized demand for XTZ.
The first hurdle for Tezos price is the June 25 high of $2.88 and then the June 12 low of 2.92, followed by the June 17 high of $3.43, which currently coincides with the lower trend line of a symmetrical triangle. A XTZ rally of that magnitude would distribute a 28% gain from the current price.
If Tezos price breaks out above $3.43, it may tag the declining 50-day simple moving average (SMA) at $3.78, and maybe the 200-day SMA at $3.93. It will be a challenge to extend the advance beyond those levels as the weight of the Death Cross will pressure XTZ.
Critical to the mildly positive XTZ outlook is the emergence of a strong bid and increased clarity in the cryptocurrency market, particularly in the altcoin space. If demand ascends to the levels tallied following the May 23 plunge, Tezos price will test the defined levels cataloged above.
XTZ/USD daily chart
Conversely, a daily close below the XTZ May low of $2.42 and the 2019 trend line will introduce a new wrinkle and expose Tezos price to a sweep of last week’s low of $2.11, and if the selling accelerates, a sweep of the December 2020 low of $1.60. It would confirm the end of the longstanding uptrend from the 2018 low.
Since March 2020, the cryptocurrency market has conditioned investors and commentators to anticipate bold price action, up or down. At the core have been exaggerated forms of greed and fear, taking turns dictating the environment. However, it is important to consider that Tezos price may not strongly recover, opting for a directionless route.
Be sure; market operators are not prepared for a trendless investing backdrop, where greed and fear are displaced with restlessness principally due to unresolved portfolio losses.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.