Tezos: What to expect from XTZ’s recent patterned breakdown
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Tezos [XTZ] halted its up-channel recovery after the recent bearish break below the pattern. The $1.6-resistance provoked the sellers to recoup their power and pull XTZ below the EMA ribbons. After the recent spike in selling pressure, XTZ could continue seeing near-term setbacks.
Looking at the south-looking tendencies of the EMAs, the buyers could face a tough time steering the near-term trend as per their fancy. At press time, XTZ traded at $1.519, down by nearly 6.24% in the last 24 hours.
Source: TradingView, XTZ/USDT
In the previous bearish pull from the $2.2-mark, XTZ lost nearly half its value as it snapped through numerous vital price levels. Thus, pushing the price action below the EMA ribbons.
However, the bulls have shown a gradual resurgence from the alt’s 27-month low on 19 June. The buyers had been guarding the $41.2-mark support for over two years now. Thus, the alt marked a steady revival on its peaks and troughs.
Over the last few days, XTZ saw an up-channel that helped buyers reclaim a spot above the EMA ribbons.
As the price broke down from this up-channel, the bears could aim to break below the $1.5-support in the coming sessions. Also, the Supertrend took a bearish stance by turning red and looking south in the last few hours.
Any close below the $1.5-mark could aggravate the selling efforts. In this case, the potential shorting targets would lie in the $1.47-$1.49 range. However, a sudden bullish resurgence should find testing resistance near the $1.57 zone.
Source: TradingView, XTZ/USDT
The RSI lost its position above the midline and revealed a bearish structure at press
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