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On September 7, 2019, theprice reached a low of 9319 satoshis. After a slight increase, it fell to the same level again on September 14 — creating a double bottom. Afterward, a rapid upward move ensued and XTZ reached a high of 11,293 satoshis on September 18. It has been decreasing since.
Where will the Tezos price go next? Keep reading below if you are interested in finding out.
For our previous analysis, click here.
A look at the daily chart shows that XTZ had been trading inside a descending channel since August 5.
The period discussed in the introduction is highlighted.
After the breakout, the Tezos price created two bearish dojis.
This is a customary movement since the price usually retraces after upward moves.
Looking at the daily chart we can see a very significant support area, found near 10,400 satoshis.
It acted as support on August 29, before turning to resistance through the long upper wick of September 9.
After the breakout, the XTZ price has begun to retrace and has almost reached this area.
The significance of the support area is further strengthened once we incorporate daily moving averages (MA) into the analysis.
The Tezos price is trading above both the 10- and 20-day MAs, which are very close to making a bullish cross.
Additionally, they are right below the support area.
It would be very likely for the XTZ price to use them as support from now on.
Looking at the four-hour chart allows us to draw a more precise support area.
Additionally, it gives us two resistance areas, found at 11,200 and 11,500 satoshis respectively.
However, we can also see the absence of a clear trading pattern or a single support/resistance line.
This can be explained since the recent upward move has been a parabola.
The upward move and the ensuing retracement has been marked by very low volume
Volume pales in comparison to that of the previous upward move on September 9.
This is a sign of a lack of interest in the market.
Therefore, we believe that XTZ will trade inside a range between 10,400 and 11,500 satoshis.
The XTZ price recently broke out above a descending channel.
It is not following any resistance/support lines.
According to our analysis, it is likely to trade inside a range between the support and resistance areas of 10,400 and 11,500.
For hypothetical trading purposes, we consider XTZ a short/medium-term buy near the current price of 10,400 satoshis.
Do you think XTZ will reach the support area? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView
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