- Tezos price trades currently at $6.81 in a third straight bearish session.
- Tezos market sentiment remains positive as it trades within the confines of an ascending parallel channel.
- XTZ must discover support around $6.47 to avoid tanking further.
The recent rally in Tezos price which was bolstered by the entry of Tezos into the world of Non-fungible Tokens (NFTs) has ended up in a clear bearish price action.
XTZ rally has rallied more than 283% from $2.09 on July 21 to the September 13 four-month high around $8.30. The increasing bearish momentum saw Tezos (XTZ ) form am ascending parallel channel from September 07 after bouncing off support provided by the 200-day Simple Moving Average (SMA) at $4.13.
On Monday, the asset tested the pattern’s upper boundary resistance $7.85 to set a four-month high at $8.30. But XTZ corrected confirming seller congestion near the upper boundary of the rising channel resistance. Tezos now risks falling further towards the start of the lower boundary near $3.69 based on similar pull-back moves spotted between May 07 and May 20.
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Tezos Needs to Discover Support At $6.51
At the time of writing, Tezos price is trading in a third straight bearish session at $6.81 as it struggles to remain within the confines of the ascending parallel channel. Note that as long as the Tezos price remains within the confines of the rising channel, it will sustain the bullish sentiment.
A daily closure above the $7.0 level will see Tezos rise higher to tag the $8.0 mark, but will have to overcome the $7.18 resistance first. A clear bullish breakout will be achieved once XTZ breaks above the September 13 high at $8.30. After which, a rise towards the $9.0 level above the upper boundary of the ascending parallel channel would be the next logical move.
XTZ/USD Daily Chart
At the moment, things do not look good for the Tezos price. XTZ/USD price has to discover support provided by the recent lows around $6.47. Holding above this level will keep Tezos within the confines of the rising channel and increase the odds of continuing the bullish leg.
However, if things go completely south and XTZ closes the day below this level, Tezos will drop to tag the $6.09 support wall. Further drop could see the XTZ price fall lower to tag the start of the lower boundary of the rising channel at $3.69. If this happens, it would represent a sharp drop of approximately 46% from the current price.
I want to cautiously note at this point that technical tools disagree with this XTZ’s eerie bearish setup. The daily chart shows that Tezos sits on strong support around the $5.0 zone and still trades within the confines of a rising channel. Also, The position of the RSI near the overbought zone at 66 and the movement of the MACD above the zero line in the positive region indicates that XTZ may retain its bullish bias and is one of our top-5 cryptos this week.
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Nancy Lubale
