- Tezos price pauses as price action enters the consolidation phase.
- XTZ is capped by the RSI that is too far overbought and needs to cool down.
- Expect a drop back to technical support before price action ticks $1.20 to the upside.
Tezos (XTZ) price is cooling after a violent bullish rally pierced through some quite substantial elements. A glance at the daily performance of XTZ reveals that the rally is a perfect technical rally that will see a small step back in the coming days. That small dip is the perfect moment for bulls to buy into the price action before Tezos price swings back up 27%.
Tezos bulls’ technical play holds 27% gains
Tezos price delivered its first bullish signal to the market last week on January 11 as it pierced through the monthly pivot level at $0.82. Bulls broke the cap to the upside, tested it for support the day after and the price action then took off again in search of the next resistance. That was the 55-day Simple Moving Average (SMA), which again got broken and tested for support with a higher follow-through.
XTZ currently resides at the monthly R1 resistance level, and with the rally mentioned above the Relative Strength Index (RSI) has been trading for a few days now above the oversold threshold. Any upside will be limited and will only see thin buying from new traders and capital. Instead, look for the cooldown with a step back to the monthly R1 support level. The returning pattern of support can provide an entry-level at $0.94 before being pumped higher toward $1.20.
XTZ/USD daily chart
Risk to the downside could come with the small shift in sentiment being seen this morning in the ASIA PAC session with several negative headlines that could stall or break the reopening story in China. Down the line, it comes down to the fact that the Chinese population is growing old, with fewer young people supporting retirees. This could bite into growth and the reopening story of China and, therefore, the world economy, with XTZ seeing trading near $0.90 as a small risk premium of a recession gets priced in again.
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.
Recommended Content
Editors’ Picks
Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.
LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.
THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27. RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.
Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.