Tezos Price Analysis: Tezos bounces off the 38.2% to the downside

• Tezos looks to continue its long term primary trend to the downside.
• The price is heading to the 1.78 support level and a break could give us an important sign.

XTZ/USD daily chart

Tezos has been in a downtrend since 19th February and more recently there has been a pretty deep upward correction to 2.18. Now it seems the price has been halted from moving higher by the 38.2% Fibonacci retracement level. Since hitting the retracement the price has also moved back below the 55 exponential moving average to the downside and the 200 simple moving average lies in wait slightly lower. 

Looking more closely at the technical indicators, the relative strength index indicator has also moved lower below the 50 mid-line. One saving grace for the bulls is the fact that the volume has been lower on the break lower than it was on the move up. This could mean there is less momentum behind the bearish move. There is also another thing that could stop the price moving lower and that is the orange trendline. The price could find that one difficult to break but if it does lower support zones could be targeted.