Why the Tezos price remains in a bearish death hold

Tezos price is currently 65% below the 200-week moving average.
XTZ price auctions between significant levels.
Invalidation of the bearish thesis is a breach above $1.80.

Tezos price shows short-term optimism, but being an early buyer remains ill-advised for reasons mentioned below.

Tezos price needs more confirmation

Tezos price currently auctions at $1.56 as the bulls have found support from the 8-day simple moving average (SMA). On intra-hour time frames, the XTZ price is testing the 21-day SMA. A successful daily closing candle above it could enable re-entrance into the $1.60 zone.

Despite the shorter optimistic signals, traders should continue to practice caution when dealing with the Tezos price action. The bears have consistently produced lower lows and lower swing highs amidst the decline.

XTZ USD

The Volume Profile indicator confounds the call for caution as the bulls have yet to produce a retaliation worthy of praise this summer. Lastly, the bears successfully produced a breach below the ascending trend line that has provided support for the Tezos price throughout the summer.

If market conditions persist, a sweep of the lows event could occur for the XTZ community. A closing candle below $1.45 could catalyze a 33% decline targeting $1.00.

Invalidation of the bearish thesis is a breach above $1.80. If the bulls can hurdle the barrier, a rally towards the 200-week moving average could occur at $2.84, resulting in a 64% increase from the current Tezos 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