- Tezos is motionless between the 50 SMA resistance and the 200 SMA support.
- The ongoing consolidation is soon approaching a tipping point as the Bollinger Bands squeeze.
Tezos, like many other cryptocurrencies in the market, had a relatively motionless weekend session. Minor price movements have been witnessed over the last 48 hours. The least resistance path is sideways, while XTZ is stuck between crucial resistance and critical support.
Tezos consolidation could last longer
XTZ/USD is teetering at $2.3 at the time of writing. The 50 Simple Moving Average and the 100 SMA in the hour timeframe cap upward movement. Closing the day above this critical zone will pave the way for gains to $3.
Slightly under the current price level, support has been reinforced by the 200 SMA. The Relative Strength Index confirms the consolidation as it levels marginally under the midline.
%20(21)-637429162365397163.png)
XTZ/USD 4-hour chart
The Bollinger Bands suggest that a breakout is nigh as the constriction tightens. A break above the Bollinger Bands’ middle boundary will help validate an escape to the upside. Similarly, the Moving Average Divergence Convergence adds credibility to the consolidation. However, a minor bullish divergence above the MACD shows that bulls have the upper hand.
%20(22)-637429162420423040.png)
XTZ/USD 4-hour chart
It is worth noting that a breakdown, perhaps to the support at $2, will come into play if Tezos closes the day under the 50 SMA. Furthermore, if bulls fail to overcome the Bollinger Bands’ middle boundary resistance, sellers will probably swing back into action, thus forcing XTZ to lower levels.
It will also be detrimental for XTZ to slide under the 200 SMA, as it will call for more sell orders, creating enough volume to force the token into an extended downtrend.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AAVE proposes a slew of upgrades and expansions in plan for 2030
Aave has proposed a Unified Liquidity Layer, V4, and solutions to enhance and compete with zero-knowledge networks in its plan for 2030 and beyond. The proposal states that Aave aims to implement its plan together with the community within the next three years.
Top 3 meme coins Dogecoin, Shiba Inu and Bonk: Recovery likely if Bitcoin freefall ends
Meme coins Dogecoin (DOGE), Shiba Inu (SHIB) and Bonk (BONK) look primed for recovery, according to technical indicators, despite the broader crypto market correction prompted by the sharp drop in Bitcoin (BTC) price.
XRP tests $0.52 resistance while XRP Ledger developers propose lending protocol on the blockchain
Ripple has failed to close above $0.52 for five consecutive days, struggling with the sticky resistance. XRP holders digested the news of US Securities and Exchange Commission’s response to Ripple in its filing that addressed the issue of “expert testimony.”
Pepe whales buying spree could trigger 55% rally Premium
Pepe price shows signs of a potential comeback as it retest the a declining resistance level. A successful breakout could kick-start a 56% move to the upside as whales continue to accumulate on dips.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.