The price of the XTZ/USD pair fell 5% today, but can rebound by over 20% if bulls maintain bullish pressure towards a key level
The price of the Tezos XTZ token is trading around $2.13, up from yesterday’s 24 hour low of $2.04. The price of the token, however, remains almost 5% lower during this period.
The bearish trend, witnessed last week, saw Tezos bulls finding it difficult to overcome resistance at a key level, which meant a potential retreat from recent lows.
The XTZ/USD currency pair on the 1-hour price chart suggests a parallel rising channel is forming. However, the upside is limited around the current price level with the SMA50 and SMA100 providing the main obstacles. Given the recovery in the RSI, we will likely see a jump in the hourly chart.
A break above moving averages could put buyers under price pressure around $2.2, suggesting a 20% increase from current levels.
XTZ/USD chart 1 hour. Source: TradingView
The outlook on the 4-hour chart is also positive, as seen on the three green candles with the lowest maximum and minimum. It seems that the bulls are trying to defend their gains after slipping below the SMA50, SMA100 and SMA200.
The moving averages are grouped around $2.18 and $2.22, which means that a break above these levels could give the bulls the motivation to attack resistance around $2.40. MACD is suggesting a bullish divergence while the RSI remains upwards after leaving oversold territory.
Although the bulls target a break above $2.2, the outlook will be bearish – if the bearish pressure breaks the lower limit of the parallel rising channel that has formed.
In this case, the bulls will have to defend the support zone around $2.10 or below, while the bears can easily drop the XTZ/USD pair to $2.04. A prolonged disadvantage means that the next target for bears is $ 1.9.
Altcoins are seeing red
As the price of Bitcoin appears to hold gains above $12,000, most altcoins are registering losses or negligible advantages, suggesting that money is flowing into the higher cryptomeda.
The price of Ethereum, as a percentage of Bitcoin, has fallen to about 3%, with Ether bulls probably giving the initiative to bears if the price falls below $350.
Zcash (ZEC) and NEM (XEM) are among the biggest losers, with their respective prices falling by more than 10% in the last 24 hours. ChainLink (LINK), Filecoin (FIL) and Crypto.com Coin (CRO) fell 4% -7% on the day.
Among the top 20, TRON (TRX) with + 3.5% and Litecoin (LTC) with + 1.6% on the day show signs of strength.
While the leading altcoins continue to struggle, almost $2 billion was eliminated from the total market capitalization of the altcoins in just 24 hours. Meanwhile, the Bitcoin dominance index jumped to 60.6%, according to data from CoinMarketCap.
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