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

Published March 26, 2020 | Updated March 26, 2020

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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.

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.

Daily XTZ/USD chart showing a bearish flag pattern. Can bulls prevent breach past $1.60? (TradingView)

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?

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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.

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.

Bearish: Hourly candle dipped below the 50-day MA line. (TradeView)

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

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Lujan Odera 396 Articles
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.
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