Tezos Market Update: XTZ/USD range-bound as consolidation kicks in between 50 SMA and $2.50

• Tezos sideways price action could last longer based on the RSI and the MACD.
• Tezos’ chances of hitting $3.00 depend on the bulls’ ability to break above $2.75.

Tezos is trading below the 50-day Simple Moving Average (SMA) following a rejection from levels slightly above $3.00. The bearish trend also corrected under the ascending trendline support. The cryptoasset’s immediate downside is supported by buyer congestion at $2.50. XTZ/USD has settled for consolidation between the 50-day SMA ($2.75) resistance and the $2.50 immediate support.

This ongoing sideways action is strongly supported by various technical indicators including the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). The latter is moving sidelong at 47 after a minor recovery from levels around 40. As long as the RSI holds this movement, consolidation would take precedence.

The MACD also puts emphasis on the sideways price action as it holds tightly to the midline. A small bearish divergence from the MACD shows that the trend in the current session is somehow in favor of the sellers. In this case, $2.50 support could be retested in the near term, especially if the hurdle at the 50 SMA remains intact much longer. If push comes to shove and $2.50 is shattered, XTZ/USD could seek support at $2.25 (marginally above the 200-day SMA), $1.50 and $1.00. On the upside, the hurdle at $2.75 (50-day SMA) must come down for XTZ to revive the momentum targeting $3.00.

XTZ/USD daily chart