Tezos (XTZ) Bulls Abandon Push To Key Resistance As $1.40 Beckons

Tezos (XTZ) is one of the top-ranking coins ranking well over the first two months, reaching an all-time high at $3.90 in February before the drastic “Black Thursday” crash wiped off 57% of the token’s value. Over the past week, bulls have roared back in the market as several altcoins gained double digits on Mar. 25.

🚀 New listing alert 🚀@Tezos is now available on #Poloniex! You can deposit $XTZ into your account now and soon you’ll be able to post limit orders for XTZ/BTC, XTZ/TRX, and XTZ/USDThttps://t.co/algpGE3TmB pic.twitter.com/Nr6KEdcYuk

— Poloniex Exchange (@Poloniex) March 24, 2020

XTZ/USD witnessed a steady increase in trading volumes in the early trading hours of the Asian market on following the latest listing on Justin Sun-owned exchange, Poloniex. However, the price did not see much movement trading in a sideways pattern after rejecting yet another key level.

XTZ/USD forms bearish flag pattern, $1.60 incoming?

The XTZ/USD bulls seem to have abandoned the key $1.80 level as seen on the higher timeframe charts. On the 4-hour charts, price bounced off key resistance at $1.79 to set an intra-day low of $1.66 – a rather similar pattern to 24 March’s bullish move. However, as the former day moved up the current price is stagnant around the $1.70 – $1.80 region, forming a bearish flag pattern.

Price looks set to dip towards the $1.60 provided by the flag’s support level bringing bears and bulls to a critical point that determines the long term XTZ price movement. A bounce from this level may set the price past the obstinate resistance level at $1.80 and start a potential bullish run back to 2020 highs.

A bearish outlook for Tezos?

The Tezos ecosystem has witnessed a hive of activity over the past few days. The largest holder of Tezos tokens, Tezos Foundation settled their long-standing lawsuit on their offering; listing on Poloniex, and the release of their biannual report that showed the Foundation sold of 8,000 BTC over the course of 2019.

https://twitter.com/TeddyCleps/status/1242780204805824512

While the development of the blockchain and baking protocols flourish, the short term charts are singing a different tune. The hourly candle crossed below the 50MA line giving a major bearish signal towards the $1.45 support level.

The relative strength index (RSI) oscillates in a bearish trajectory entering the selling level at 48, which also confirms a possible selloff incoming.