Key Highlights:
- Tezos lost 37% in value since its peak
- Still currently up around 146% since the beginning of 2020
- Daily chart ready for a bounce
| ⠀Tezos price: | $2.85 |
|---|---|
| ⠀Key XTZ resistance levels: | $2,99, $3,53, $3,59, $3,76, $3,96 |
| ⠀Key XTZ support levels: | $2,62, $2,47, $2,231 |
*Price at the time of writing
Tezos has formed some pretty long lower wicks on the daily chart for the past 3 days. The bulls have been struggling to close above the 26-period EMA but it seems they might be able to pull it off today and are currently testing the 12-period EMA.
The 37% crash since the peak at $3,96 has been one of the biggest when it comes to the top 10 cryptocurrencies by market cap. However, this was somewhat expected as Tezos has seen huge gains since the beginning of 2020, around 218% price increase from $1,23 to $3.96 in less than 2 months.
Tezos price analysis
What has been going on?
The recent crash can certainly be considered a healthy correction compared to the huge bull run that Tezos experienced this 2020. Right now the bulls are simply looking to confirm a weekly higher low compared to $1,22. They have a ton of space to work with here and are definitely still comfortable. We are looking for more clarity within the next week
Tezos price short-term prediction: Bullish
As stated above, the strong weekly uptrend for Tezos will also influence its short-term momentum. Looking at the 4-hour chart we can see that Tezos has been able to form a higher low compared to $2,47 and the bulls are looking to break above $2,9954 right now to confirm a 4-hour uptrend which would be the first step towards a daily uptrend again.
The RSI is not too overextended yet and trading volume has been dropping which indicates a big move is coming soon. Additionally, the bulls have been able to break above both EMAs and close above them as well. They are now looking for a bullish cross within the next 24 hours if the bulls can keep up the momentum.
Where is the resistance towards the upside?
We clearly have resistance at $2,9954 and $3 psychological level. The bulls need to break above this crucial resistance to confirm a 4-hour uptrend. After that, there is really not much resistance until $3,59 as the move down happened quite fast and the bears were not able to set many resistance levels.
The area between $3,48 and $3,96 will definitely offer tough resistance for the bulls but that’s still far away. On the daily chart, the bulls are now facing the 12-period EMA as resistance, currently located at $3,017, pretty close to the other resistance levels. Looking at the Bollinger bands, the top band is all the way up at $3,759 which could also be considered resistance, the average is currently located at $3,163.
What are the technical indicators showing?
The weekly RSI was extremely overextended and has still not cooled off completely currently at 73 points. On the daily chart, the RSI is lower at 53 points only but the MACD has turned bearish and it’s indicating traders to sell. Similarly, the Momentum indicator is also showing a sell signal.
The weekly time-frame, however, is far more bullish with almost all indicators showing buy signals. Additionally, XTZ just barely touched the lower band of the Bollinger bands which indicates a possible bounce happening soon.
Previous XTZ price analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent articles about the price of Tezos:
