- Tezos (XTZ) plummets briefly to $2.62 USD levels, threatening a possible dip towards sub-$2.00 USD levels.
- The daily charts RSI, Elliot’s Wave Oscillator, MACD and EMA all signal an oncoming bearish run.
Tezos (XTZ), a staking token, is having one of its worst runs so far in 2020 as the coin lost slightly more than a third of its value over the past week threatening a selloff in the coming days. After skyrocketing to all-time highs at $3.96 USD on Feb.19, the price of XTZ has faced a rough patch as the price plummeted to $2.50 USD, representing a 36.8% loss in less than a week.
The bulls have since struggled to cross above $2.95 USD resistance level, with the long timeframe technical indicators signaling a possible bearish trend in the coming days. Can the bulls prevent a breach below the key psychological level at $2.00 USD?
XTZ/USD loses 30% in a week, drops to $2.60 USD.
To be fair to XTZ, which led in returns in the previous week, the whole market is collapsing as Bitcoin (BTC) once again crossed below a key support level at $8,500 USD. However, the technical indicators on the daily chart against the dollar shows the capitulation is not over yet.
Looking at the charts, the price crossed below the 26-day EMA line which offers a very bearish signal on the token’s price in the coming days. Furthermore, after a beautiful run to ATH levels set the relative strength index on a hike to overbought levels at 91 before starting a downward oscillation. Currently the 20-day daily RSI balances on the channel support, with a break below the level confirming the continuation of the selloff.
The selloff comes as the coin was added to the Kraken exchange with pairs for the dollar, Bitcoin, Ether and Euro added each having a leverage trading of 3X. For XTZ trades, the margin opening fee is 0.02% with a 0.02% / 4 hrs rollover fee.