Tezos Is Close to Reversing Its Bearish Trend

More specifically, XTZ has been decreasing since April 26 and broke down from the ascending support line on May 13. Even though the price is in a downward trend, well-known trader @TradingTank thinks it will soon decrease. He tweeted a Tezos chart, in which he shows the price bouncing inside an important support level and moving upwards towards the closest resistance area at 35,500 satoshis.

Ascending Support Line

On May 12, Tezos broke down from a long-term ascending support line. At the time of writing, it was in the process of validating it and the 28,500 satoshi area as resistance. During the breakdown, the daily RSI decreased below 50 and has not moved back above it since, increasing the validity of the decrease. After a breakdown and subsequent validation of that area as resistance, the expected movement is another decrease. If that occurs, the closest support level is found at 25,000 satoshis, where the price would also find support above the 200-day moving average (MA).

In the shorter-term, the XTZ price has been trading inside a descending wedge since the aforementioned breakdown. The wedge is considered a bullish reversal pattern that is expected to eventually lead to a breakout. The possibility of a breakout is increased by the presence of bullish divergence in the RSI. Therefore, the price is expected to fall to the 25,000 satoshi support area once more and then break out.

XTZ/USD

XTZ/USD has been following an ascending support line since March 13. Furthermore, it has been following a descending resistance line since the April 30 high, creating a symmetrical triangle in the process. Even though the symmetrical triangle is considered a neutral pattern, it is occurring after an upward move, and the RSI has broken a bearish trendline. Therefore, XTZ is expected to break out and increase towards the closest resistance areas found at $3 and $3.6, respectively.