Why the Tezos price could start September off on the wrong foot

Tezos price has lost 27% of market value this month.
XTZ price shows bearish dominance on the Volume Profile Indicator.
Invalidation of the bearish thesis remains a breach above $2.03.

Tezos price hints that more decline is on the way. If market conditions persist, a sweep the lows event is likely to occur.

Tezos price faces resistance

Tezos price shows concerning signals as August comes to an end. Since August 17, the XTZ price witnessed a 30% decline as the bears printed a classical evening star pattern near the $1.90 barrier. The final blow occurred on August 27, when the bears breached through a supportive trend line that played a key role in the uptrend optimism for Tezos price throughout the summer.

Santiment’s Volume Profile indicator shows bears have confidently entered the market and are adding to their positions on each pullback. If market conditions persist, a sweep-the-lows event will likely occur, targeting $1.18.

Santiment's Volume Profile Indicator

Tezos price currently auctions at $1.48 as the bulls have managed to recover 3% of the value from the devastating decline. The bulls are currently experiencing resistance near an 8-day simple moving average, confounding the idea that the sell-off is not over yet.

XTZ/USDT 1-Day Chart.

Invalidation of the bearish thesis remains a breach above $2.03. If bulls can breach this level, they may be able to kick off a crypto bull run targeting $3.00, resulting in a 100% increase from the current XTZ price.

In the following video, our analysts deep-dive into the Tezos price action, analyzing key levels of interest in the market - FXStreet Team

Share: Cryptos feed

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