- Tezos price looks to continue its 16% upswing over the past 24 hours.
- A reversal after the retest of the recent swing high at $4 or $4.17 seems likely.
- If XTZ produces a decisive close above $4.40, it will invalidate the bearish outlook.
Tezos price has been respecting the extremes of the range as it consolidates within it. After a massive leg up, XTZ might be due for a retracement.
Tezos price ponders a correction
Tezos has witnessed a 16% rally over the past 24 hours to where it currently trades, $3.90. A retest of the recent local top at $4 seems plausible. However, investors should also consider a sweep of the range high at $4.17.
Tezos price is likely to begin its correction toward the demand zone extending from $3.47 to $3.54 after it retests either of the above-mentioned levels.
If the sellers have extra oomph, this downswing could extend up to the 50% Fibonacci retracement level at $3.30.
Under extremely bearish conditions, a retest of the 70.5% Fibonacci retracement level at $2.94 seems likely.
XTZ/USDT 4-hour chart
Interestingly, the social volume for Tezos price saw a massive uptick on June 6. Typically, a spike in this metric coincides with local tops. Therefore, the bearish narrative is backed by a surge in social volume, suggesting that investors could start booking profits, leading to a downswing.
XTZ social volume chart
If the buyers manage to push past the range high at $4.17 and produce a decisive 4-hour candlestick close above $4.40, it would invalidate the bearish thesis explained above. In such a case, Tezos price might retest the range high and start an upswing that could extend up to the 127.2% Fibonacci extension level at $4.65.
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.