Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not taken as investment advice
With a market capitalization of $2.67 billion, Tezos has been pushed down to the 29th position on CoinMarketCap’s list. Despite falling on the charts in terms of market capitalization, however, the digital asset did manage to register 89% year-to-date returns, at press time.
The recent market-wide corrections pushed the value of XTZ under $4. At the time of writing, the cryptocurrency was being traded at $3.47.
Tezos six-hour chart
Source: XTZUSD on TradingView
Tezos’s six-hour chart highlighted a strong hike in the altcoin’s value. However, after the crypto-asset consolidated above $4.43, the selling pressure increased and the crypto’s value dropped.
With the altcoin’s press time value ranging from $3.10 and $3.94, the chances of buyers entering the market seemed high.
Reasoning
When the crypto-market corrected itself, XTZ’s value also fell. In fact, after hitting a peak of $5.6, the cryptocurrency fell dramatically. However, changing market trends could play an important role in helping XTZ visit its previous highs.
As the price slipped, the Bollinger Bands underlined that volatility had fallen across the market. Meanwhile, the Signal line, along with the 50 moving average, took a position above the candlesticks, highlighting the lower trending price.
The Relative Strength Index revealed that the digital asset had just returned from the oversold zone, with the price consolidating between $3.10 and $3.94. XTZ has remained close to the oversold zone, but at the time of writing, there were buyers trying to push the value higher on the charts.
Finally, the Awesome Oscillator showed that the market had lost momentum as it reported a negative value.
Crucial levels to watch out for
Entry-level: $3.58
Stop-level: $3.29
Take profit: $3.95
Risk to Reward: 1.24
Conclusion
XTZ’s press time chart was picturing a phase of consolidation. However, bearishness in the market was falling at the time of writing, with a price swing towards the upside possible in the near-term if traders get involved.
