Tezos (XTZ) struggles to regain his footing after a steep fall
Tezos is trading between support at $ 1.70 and resistance at $ 2.80.
Longer-term timescales show considerable weaknesses
The XTZ / BTC pair is trading between 16,500 and 24,000 satoshis.
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French Army Tezos
The price of Tezos (XTZ) has been declining since its rejection by a high fibonacci level. We could see some short term increases, but it looks like the long term trend is bearish.
XTZ price peaked at $ 4.49 on August 13, and has been declining ever since. The limit of its rise coincided with the fibonacci level 0.618 of the entire previous downstroke, resulting in a powerful rejection.
Tezos‘ long-term weaknesses
This peak combined with a bearish divergence in the RSI like the MACD, the latter also turning negative.
This tells us that the most likely scenario would be a decline towards the $ 1.50 area in order to validate the upward support line.
On September 4th, the price fell below the support zone of $ 2.80, as well as the ascending support line in place since March.
The XTZ then continued its descent with increased speed.
The main support area is at $ 1.70, which is the 0.786 fibonacci level of the entire upward movement, and former resistance. When price tests it, this resistance should likely convert to support.
Technical indicators are bullish:
The MACD has generated bullish divergences and is on the rise
The RSI has moved out of its oversold territory
The Stochastic Oscillator is forming a bullish cross
There are signs that after a possible dip to $ 1.70 support, price will likely test $ 2.80 resistance again. The long term trend remains bearish.
Cryptocurrency trader @Cryptotoni_ shared a chart of the XTZ indicating that the price has reached a limit and is expected to resume its downward movement shortly.
From the aforementioned August 13 high, it looks like the XTZ has started a bullish impulse (in black below), with a third wave extended (in blue).
If the count is correct then the XTZ would probably be in wave 4. The latter is expected to end between $ 2.71 and $ 2.96, which is between the fibonacci levels 0.382 and 0.5 of the wave. 2.
Price is then expected to complete a final descent, which would take it between $ 1.50 and $ 1.70. This area is a confluence of the long term upward support line outlined in Section 1, and the area of support mentioned in Section 2.
The ZTC / BTC chart is more ambiguous. The price is moving between the support of 16,500 satoshis, and the resistance of 24,000 satoshis. It is currently in the middle of that range.
The technical indicators are uncertain:
The MACD is on the rise but has yet to reach positive territory
RSI is rising, but remains below 50
Stochastic RSI is forming a bullish cross but this is not yet confirmed
Thus, the most plausible scenario would be a period of consolidation between these two areas.