- Tezos price prints a subtle bullish divergence on the daily time frame.
- The volume profile indicator is still relatively less than the volume that produced the summertime rally.
- Invalidation of the bullish thesis is a breach below $1.437.
Texos price shows possibility of a bullish retaliation targeting the September high at $1.75.
Tezos price shows posirtive signals
Tezos price could make a run for new highs in the coming days. A subtle bullish divergence has been established on the Relative Strength Index as the bears have printed a large engulfing candle. The divergence occurs above supportive buyer’s territory which confounds the idea that a smart money bear trap could be on the table.
Tezos price currently auctions at $1.52 as the bulls are attempting to reconquer the 21-day simple moving average (SMA). The Volume Profile Indicator confounds the idea that an uptrend move is still possible as the bearish volume which induced the current sell-off is still relatively less than the volume established during the summertime rally. Additionally the current price is just below the 61.8% FIbonacci level based on the previous swing low and swing high in September.
When combining these factors, the traders who have their stop losses placed above the $1.75 could witness a challenge. Invalidation of the bullish thesis is a closing candle below the .886 Fibonacci level currently positioned at $1.437
In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team
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