Tezos Continues Its Rapid Descent

Share Article
In Brief
  • Tezos has broken down from a long-term ascending support line.

  • There is support and resistance at $1.70 and $2.80, respectively.

  • XTZ/BTC has broken down from the 25,000 satoshi support area.

  • promo

    Free Cloud Mining Providers to Mine Bitcoin in 2021

The Trust Project is an international consortium of news organizations building standards of transparency.

The Tezos (XTZ) price has been decreasing rapidly since Aug. 13 and has broken down from several crucial support levels. Unless the price is successful in reclaiming them, the trend is considered bearish.

Sponsored



Sponsored

Breakdown From Long-Term Support

The XTZ price has been decreasing since a high of $4.49 was reached on Aug. 13. The decrease has been swift, and on Sept. 4, the price broke down from to major support levels:

  • An ascending support line in place since the March 13 lows
  • The $2.80 support area

Afterwards, the price validated the area as resistance and continued its descent. The price is approaching the $1.70 area, which is the 0.786 Fib level of the entire upward move and is expected to act as support.

Sponsored



Sponsored
XTZ Chart By TradingView

Technical indicators show extremely oversold conditions, but do not yet confirm that a reversal has begun. While there is a developing bullish divergence in the MACD, it has begun to fall once more prior to reaching positive territory.

The RSI reached its lowest levels since the March crash, but has not generated any bullish divergence yet. Similarly, the Stochastic Oscillator has yet to make a bullish cross.

All these are signs that the price is expected to decrease all the way to the $1.70 support area, before possibly beginning an upward move.

XTZ Chart By TradingView

XTZ/BTC

Cryptocurrency trader @ACXtrades outlined an XTZ chart, which shows that the price has broken down from an important support area at 24,500 satoshis. While a reclaim of the area is possible, he states that a validation of the area as resistance followed by a decrease is more likely.

Source: Twitter

Since the tweet, the price has continued its descent. The XTZ/BTC chart looks considerably more bearish than its XTZ/USD counterpart.

Besides falling below the 24,500 satoshi support area, which had been in place for eight months, the price has continued its descent without even validating it as resistance. Furthermore, technical indicators show no signs of a reversal.

If the price continues falling, the closest support area is found at 16,500 satoshis.

XTZ Chart By TradingView

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

Follow Author

Crypto predictions with the Best Telegram Signal with +70% accuracy!

Join now

Free Cloud Mining Providers to Mine Bitcoin in 2021

Go

How To Mine Cryptocurrency: Beginner’s Guide

Let's Go