XTZ Targets Closest Support After Triangle Breakdown

Share Article
In Brief
  • XTZ is trading between support and resistance at $1.70 and $2.75.

  • The price has possibly broken down from a symmetrical triangle.

  • XTZ is completing the fifth and final wave of a bearish impulse.

  • promo

    Join our Telegram Group and get trading signals, a free trading course and daily communication with crypto fans!

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

The Tezos (XTZ) price has been falling rapidly since the beginning of August and has just broken down from a neutral pattern.

Sponsored



Sponsored

The price should decline until it reaches the support levels outlined below.

Descent to Support

The XTZ price has been falling since a high of $4.49 was reached on Aug. 13. The price proceeded to break down from an ascending support line and the $2.75 area afterward. It validated the latter as resistance before resuming its downward move.

Sponsored



Sponsored

The price reached a low of $1.91 on Sept 21. If XTZ continues falling, the closest support area is found at $1.70, a previous resistance area, and the entire decline’s 0.786 Fib level.

XTZ Chart By TradingView

A closer look reveals a possible breakdown from a symmetrical triangle, which had been in place since the beginning of September. While the breakdown is not yet confirmed, XTZ touched a low considerably below the triangle’s ascending support line.

Furthermore, technical indicators are bearish. The RSI was rejected at the 50 line and is falling. The MACD is also falling even though it’s currently positive. The Stochastic Oscillator is in the process of making a bearish cross.

Therefore, the price should decline towards the $1.70 support area.

XTZ Chart By TradingView

Wave Count

Cryptocurrency trader @Cryptotony_ outlined a long-term XTZ count, stating that the price will decline once more until around $1.70 before beginning to move upwards. The low coincides with the support area we have outlined above.

Source: Twitter

Since the previous Aug 11 high, the XTZ price seems to have begun a bearish impulse, outlined in black below. If correct, the price has just completed wave 4, after an extended third wave. Therefore, the fifth and final wave would likely take the $1.70 support area price and possibly lower.

A rally above the most recent high at $2.32 would invalidate this particular wave count. However, since the wave count, price action, and technicals are in alignment, the most likely scenario is a fall towards support.

XTZ Chart By TradingView

XTZ/BTC

The XTZ/BTC chart is considerably more bearish than its USD counterpart. The price has just broken down from the 16,800 satoshi area, something it had not done since Jan 2020, and is currently approaching the next support level at 13,400 satoshis.

Even though the daily RSI is oversold, there are no reversal signs yet, and the Stochastic Oscillator has just made a bearish cross.

Therefore, the price is likely to continue falling towards 13,400 satoshis.

XTZ Chart By TradingView

To conclude, both the XTZ/USD and the XTZ/BTC pairs will likely decline towards the support levels outlined above.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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 discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

AKTIO Coin Launchpad Pre-Sales with 12.5% Bonus

Discover

Limited offer! Learn to mine and trade crypto today for free

Go