Tezos Price Prediction: XTZ holding firmly between crucial resistance and support

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.

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.

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.