Tezos Slumps above $2.0 Support, May Resume Uptrend

Since August 13, Tezos (XTZ) has been on a downward move. Today, XTZ has fallen to $2.37 low at the time of writing.

The selling pressure reached an advanced stage when sellers pushed price below the $3.50 support. The price corrected upward to retest or break the $3.50 high but was repelled. The resistance plunged the coin to $2.37 low.   

Nonetheless, it will be an uphill task for the bulls to push prices upward as the previous failure resulted in the recent fall. The current price level is the historical price level of July. In July, the price consolidated above this level and later moved upward. This price level has not been broken since April. Today, the market is fluctuating at the same level. It is unclear if the downtrend will continue. Perhaps at the low of $2.00, the market may reverse.

Tezos indicator reading 

The crypto is already below the 20% range of the daily stochastic. It indicates that XTZ is in the oversold region of the market. It indicates that the selling pressure has reached exhaustion. Expectantly, buyers are likely to emerge at the oversold region to push prices upward. The EMAs are sloping southward indicating the downtrend. 

Key Supply Zones: $4.50, $4, $3.50

Key Demand zones: $2.50, $2, $1.50  

What is the next direction for Tezos?

Tezos (XTZ) has fallen above $2.00 and further downward move is unlikely. On the August 27 downtrend, Tezos fell to $3.10 low but the last retraced candle body tested the 61.8 % Fibonacci retracement level. This indicates that the downtrend will extend to the 1.618 Fibonacci extension level.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.

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