• Tezos price has been consolidating in a symmetrical triangle pattern for almost a month.
  • XTZ could drop 12% due to Tom DeMark Sequential indicator’s sell signal.
  • Completion of this technical formation forecasts a 40% breakout.

Tezos price could see a small pullback after hitting a ceiling in a symmetrical triangle pattern. Coercing this correction is another indicator’s sell signal, which makes the drop compelling.

Tezos price hits a roadblock

Tezos price has been forming lower highs ever since it hit a local top of $5.64 on February 14 due to aggressive sellers. However, buyers responded with an equal force, creating higher lows. A symmetrical triangle pattern forms by connecting the swing highs and the swing lows using trendlines.

This setup’s target is identified by measuring the distance between the pivot high and pivot low and adding it to the breakout point. Since this pattern has no inherent bias, the direction of the breakout could go either way.

Now, Tezos price seems to have hit a blockade around the $4.58 level due to the presence of the declining trendline acting as resistance and the SuperTrend indicator’s sell signal. Favoring a pullback is the Tom DeMark sequential indicator, which forecasted a one-to-four candlestick correction after a sell signal in the form of a green nine candlestick was formed on the 12-hour chart.

Due to such a strong confluence of multiple technical aspects, Tezos price seems to be ready for a 12% correction towards the triangle’s lower trendline around $3.73. Things get particularly interesting around this level. A prolonged selling pressure leading to a 12-hour candlestick close below this point could trigger a steep 40% correction to $2.18.

XTZ/USDT 12-hour chart

XTZ/USDT 12-hour chart

While the above seems exceptionally bearish, investors need to note that a bounce around the $3.73 level could result in an upswing in Tezos price towards the symmetrical triangle’s upper trendline at $4.47. If buyers band together, leading to a decisive 12-hour candlestick close above technical formation’s upper trendline, then a 40% bull rally to $6.32 can be contemplated.


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why crypto may see a recovery right before or shortly after Bitcoin halving

Why crypto may see a recovery right before or shortly after Bitcoin halving

Cryptocurrency market is bleeding, with Bitcoin price leading altcoins south in a broader market crash. The elevated risk levels have bulls sitting on their hands, but analysts from Santiment say this bleed may only be cauterized right before or shortly after the halving.

More Cryptocurrencies News

Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets

Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets

Manta Network (MANTA) price was not spared from the broader market crash instigated by a weakness in the Bitcoin (BTC) market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.

More Manta Network News

Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray

Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray

Bitcoin is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving. 

More Bitcoin News

OMNI post nearly 50% loss after airdrop and exchange listing

OMNI post nearly 50% loss after airdrop and exchange listing

Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.

More Omni Network News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP