Tezos (XTZ), a staking token, indicators signal a possible drop to the $1.50 USD region as selling pressure across the cryptocurrency industry intensifies.
XTZ/USD tests lower bearish wedge support level at $1.55 USD
Tezos (XTZ/USD) has remained one of the best performers in bearish periods through 2019 and the subsequent downtrends since the Xi pump have been a great example of the staking token’s resilience. Bitcoin (BTC), the top cryptocurrency and a driver of the market, plummeted 4% in the past 24 hours to trade at $6,850 USD, as at time of writing, causing a huge selloff through the market. Despite XTZ bulls holding out on the collapsing market for 24 hours, the coin looks headed to the $1.50 USD region as the coin failed to break major resistance at $1.940 USD.
A break above the wedge pattern set the XTZ/USD pair in a frenzy pushing the staking token towards major resistance at $1.940 USD. XTZ/USD price bounced off lower resistance at $1.840 USD signaling an extended downtrend period in the coming days. Buying pressure intensified in the early trading hours of Tuesday, 17 December as bulls pushed the price to an intraday high of $1.7680.
The failure to break the minor resistance level saw bears take control
Bearish momentum on hand, $1.50 USD a possibility?
The feel good state of the XTZ community may feel a slight knock in the coming festive period as the bears look set to push the coin towards the $1.50 region. Looking at the daily charts, a profitable selling opportunity is on the pair after successive failures to break the resistance. Furthermore the oscilators on higher timeframes indicate an overbought market for XTZ/USD.
$XTZ Approaching huge overhead resistance whilst Overbought on mulitple HTFs.
Removing my risk here & sticking to a tight trailing stop. pic.twitter.com/OSGplssr42
— ◇.A.C.X.◇ (@ACXtrades) December 17, 2019
Looking at the daily charts, buying pressure seems to have reached a squeeze as volumes dropped and relative strength index (RSI) oscillates below the upper band. Despite making it to the top 10, XTZ signals possibilities of dropping to $1.50 USD if the selling pressure intensifies.
Images from TradingView
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