Tezos flirts with doom levels are it is now in a precarious situation, trading above the critical trendline which was supporting the price during the mid-term uptrend. In our Tezos price news today, we are reading more about the cryptocurrency analysis.
The level was briefly broken earlier today as XTZ faced a huge influx of selling pressure but the buyers have since been able to step up and guard against more near-term losses. One analyst is noting that the horizontal support at the trendline is weak which could indicate that the further downside is imminent before the altcoin is prepared to garner any significant buying pressure. If the trendline is defended, another ascending channel suggests that a rally to the $7.31 could be brewing.
Tezos like other altcoins grew to be highly correlated with Bitcoin and Ethereum where the assets next trend could have a huge influence on Tezos’ price. At the time of writing, Tezos is trading down by 1% which marks a notable decline from the multi-day highs of $3.80 that was set a few days ago. The highs came after the bulls posted a strong defense of the recent lows at $3.30 that was tested a week ago. The support level was tested once again and the bulls were able to guard the level. Despite the level that was tested, one analyst noted that the downside liquidation region is set between $3.10 and $3.20.
As it can be seen on the charts, the support will be enough to spark a strong rebound that will lead to a mid-term target of $4.10:
“A scenario I’ve got on Tezos.”
Another analyst explained in a recent tweet that Tezos flirts with doom levels and the lower boundary of crucial ascending channel that was guiding the multi-month uptrend and now the boundary exists at $3.40:
“XTZ flirting w/doom on this PF but if assumption = PF will hold, this is ideal buy opp. Current midline = 7.31.”
If the level is broken below, Tezos will be unable to recapture the position within the channel and the cryptocurrency will be poised to see a strong mid-term downtrend.
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