Tezos Price Prediction: XTZ at a make-or-break point after 40% crash

  • Tezos price is consolidating in an ascending parallel channel on a 3-day chart.
  • If XTZ slices through the channel’s middle line, it could confirm a 35% sell-off to $2.2.
  • However, a decisive close above $3.9 would invalidate the bearish outlook and push XTZ 30% to $5.16.

Tezos price shows a 40% crash to $3.5 after getting rejected by the ascending parallel channel’s upper trendline. Now, Tezos is at an inflection point that could result in a quick 45% bull rally or another brutal 35% crash.

Tezos price could slide lower

Tezos price has been forming higher highs and higher lows since February 20. Each swing sees an approximate 200% surge from its previous swing lows. Likewise, drawdowns from these highs are about 60% to 70%. By joining these pivot points with trendlines, an ascending parallel channel forms. This pattern forecasts a bearish outlook when breached, and the target is determined by adding the channel’s height to the breakout point.

However, XTZ is still traversing the channel and is around the middle line showing a bearish bias. Supporting this pessimistic view is the SuperTrend indicator’s sell signal, flashed on February 24. 

Adding credence to this is the Moving Average Convergence Divergence (MACD) indicator’s histograms developed below the zero-line.To make matters worse, the recent sell-off in Tezos price has pushed the 12 exponential moving average (EMA) below the 26 EMA, representing a bearish crossover.

Hence, a build-up of selling pressure could lead to a 35% crash towards the channel’s lower trendline at $2.2.

XTZ/USDT 3-day chart
XTZ/USD 3-day chart

However, a decisive close above the first swing high at $3.9 could invalidate the bearish outlook and kickstart a bull rally. If this were to happen, Tezos price could surge 30% to retest the ascending channel’s upper trendline at $5.16.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

More Ethereum News

VeChain consolidates as clear trend fails to establish

VeChain price has been on a tear since the start of 2020 and shows no sign of slowing down despite the recent market crash. Now, VET awaits a volatile breakout from its consolidation to establish a clear trend.

More VeChain News

Chainlink could be the first to recover amid market crash

Chainlink, like the rest of the market, has experienced a significant correction in the past four days However, the digital asset continues to hold above a crucial support level and on-chain metrics show it could be one of the strongest during this correction.

More Chainlink News

Cardano on-chain metrics reveal paradigm shift in nature of investors

Cardano price shows the loss of momentum from the buyers’ end, which has resulted in a breakdown of a critical support level. Now, a continuation of this momentum could ensue as blockchain data reveals a grim future for ADA.

More Cardano News


Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs

Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.

Read the weekly forecast