In this new crypto nugget on Wednesday, let’s take a look at XTZ, the native cryptocurrency of the Tezos Blockchain. Is it in a rather bullish configuration? Or is it about to experience another bearish run? In this new technical analysis, we will determine the key levels to watch and the different possible scenarios for the coming months. Without further ado, let’s go straight to the charts.
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XTZ Made a Bearish Rejection at Weekly Level
You can see that after his all time high on $12.15XTZ was unable to top during the recent bull run, is this a lack of investor interest in the asset? The pivot zone shown in blue coincides with the 50% of the Fibonacci retracement of the previous bear market. So this area is relevant because it acts as support and resistance. Recently, XTZ returned to this level along with the EMA13, but was rejected on the other hand. This speaks to the lack of power of buyers. In addition, the momentum was in the oversold zone, which favored the bearish rejection scenario.
XTZ evolves between the level to $1.18 (local medium) and the area around $1.85 / $1.96 (currently a resistor). If XTZ loses its recent weekly low, we may consider bringing the price back to: $0.83. This level was an important support in 2019. If this level ever falls, it bodes ill for XTZ as trading volume below is low. This is reflected in the few candles and the abrupt bullish extension. Thus, such a rapid reverse movement could easily occur. Of course we’re not there yet…
XTZ struggles to free itself from a daily zone
If we look at the daily scale, you can see that XTZ recently lost a technical level to $1.55 (second blue area). As long as the asset fails to rise above this level, we can consider a return to the level of $1.38. However, if he manages to break the level up, he might be able to return to $1.67. Before you get there though, there will be the confluence of EMA, which will likely be a drag on XTZ.
The downward trend is indeed very clear and relatively strong. Many altcoins are in this configuration with the recent loss of a horizontal level in confluence with the EMA 13, 15 and 32. If the XTZ fails to overcome the spin level and is rejected at the bottom, it will likely be necessary to to expect a return to $1.39 then, when the latter lets go, an XTZ to $1.18/$1.19 (low June 2021).
Here we are at the end of this technical analysis of: XTZ. You can see that the asset is currently in trouble and is in a similar bearish setup for many altcoins. It remains to be seen whether momentum will soon be cut short by a resumption of key levels or whether thealtcoin will be too weak to get there, which will result in another bearish move. It will be necessary to pay attention to the month-end close and the dynamics of the first days of September to determine the direction XTZ will take.
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