16. Januar 2021

Tezos (XTZ) continues to consolidate above long term support

The XTZ follows a long term ascending support line.

Technical indicators are neutral.

The XTZ / BTC pair is moving near its lowest level to date, at 9500 satoshis

Tezos (XTZ) price consolidates above a line and long term support zone. However, there are no signs of a bullish reversal that suggest an upward movement will follow once this consolidation is over.

The XTZ has been following an ascending support line since February 2019, when it was trading at $ 0.34. It is currently approaching this line for the fourth time.

Moreover, this line coincides with the support zone of $ 1.80, above which it is moving after breaking it in March.

Technical indicators are neutral and provide mixed signals. While the RSI has fallen below the 50 line and has validated it as resistance (red arrow below), the MACD is still above 50 and the Stochastic Oscillator is rising.

Either way, the trend is probably bullish as long as the price moves above this line / support area.

The daily chart does not clearly determine the direction of the trend

The XTZ has clearly rebounded to the fibonacci support level 0.786 to $ 1.67, but technical indicators are ambiguous. The RSI moves above and below 50, indicating a consolidation. The MACD and the Stochastic Oscillator are showing no signs of confirmation.

Cryptocurrency trader @TheEurosniper shared a chart of the XTZ / BTC pair which shows the price has deviated below the lower end of its range. Once he has returned to the lower end of his range, the trader expects a considerable upward movement.

It is indeed true that the XTZ is trading very close to its maximum low to date, at 9500 satoshis. It reached its lowest level, at 7,520 satoshis, in June 2019.

However, there are no signs of a reversal despite indicators showing the rally is oversold, so there is a possibility that the XTZ will continue to fall.

The closest resistance zone is at 15,000 satoshis.