- Tezos Hit by the Bears, Price Slides By 10%
- Is this the time to buy the dip?
- A Retest of Previous Resistance is Expected
Tezos News Today – Tezos has enjoyed an impressive bullish streak that saw it enter the top ten list of cryptocurrencies by market cap. This energetic performer from the recent past is showing some signs of retracement. XTZ corrected 32% when it hit the local high of $3.96. Are the pullbacks an opportunity to buy the dip or will they continue to slide?
Tezos Rejected at $4 Level
The token rallied towards the $4 resistance point and it was rejected. Such a rejection doesn’t equate to a wrong signal during an uptrend. Most assets do not move upwards quickly in a straight line. Rather, it endures corrective movements and moves in waves before continuing upward. Therefore, a $4 rejection is expected by most investors at this point. XTZ rallied 120% after breaking the $1.75 level without corrective moves.
The main support levels are $1.75 and $2.50, but a retracement to the $1.75 level is a 50% retracement. Such a move is not expected during bullish trends. The entire crypto market is in the red and the XTZ price chart shows a clear bearish divergence which confirms a short-time trend reversal. This led to the downward trend that the price experienced.
The chart shows that this isn’t bad considering the previous retraction of XTZ price in December 2019 from $1.75 to $1.20. This created a new higher low and the trend continued.
From the daily chart, it is clear that there are similar support levels with the primary support level at $2.50-2.70. in the case that the support fails to hold, the downward trend may continue to $1.80.
XTZ/BTC Pair May Retest Previous Levels
The XTZ/BTC pairs show a rejection at 0.0003700-0.0004100 sats. This rejection is also not a bad sign considering the fact that Tezos surpassed a significant resistance. Tezos price failed to break the 0.0002500 sats level for about 18 months. Then a breakout led to a volume increase as well as an upward trend.
The most likely scenario is a retest of the 0.0002500 sats resistance level which will confirm the breakout. The 6-hour chart also shows a retracement since the 0.0004000 sats level. The primary support levels are 0.0002950-0.0003000 sats and 0.0002500-0.0002550 sats. The lowest one is the one to watch since the 0.0002500 sats level was a massive resistance level.
However, where the 0.0002950 level provides support, there is a potential bounce coming towards 0.0003450. The test determines whether XTZ will continue the upward trend. It also determines whether a downward continuation will continue towards 0.0002500 sats.