Why the Tezos price remains in a bearish death hold

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