Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Consensus dictates that the cryptocurrency market is a bull market right now. And yet, Tezos has fallen by 58% since 13 August. In fact, during the latest price rally in November, the crypto-asset hardly managed to consolidate above its immediate resistance level. Interestingly, over the past few days, such a trend has only become worse.
At press time, Tezos was valued at $1.86, with the cryptocurrency recording a market cap of $1.41 billion.
Tezos 12-hour chart
The 12-hour chart for Tezos suggested that the cryptocurrency’s price, at press time, was consolidating near its final support at $1.78. The last time XTZ went below that range can be traced back to April 2020. The breakout took place after the price breached a descending triangle pattern and dipped under the $2-range. The 50-Moving Average for Tezos had been a strong overhead resistance since the start of December, and its pressure has been relentless on XTZ.
At the time of writing, it seemed difficult for Tezos to attain any high above $2.42, even if a bull run were to manifest over the next few weeks.
Market indicators were bearish, but one or two indicated the likeliness of change. At press time, the Stochastic RSI remained under bearish pressure, with the position of the indicator in the oversold region. While activity could be low, an oversold position is bound to rise over the next few weeks. The intensity might differ, but from the press time price position, a little bit of recovery can be expected.
The EMA ribbons, at press time, were expanding to reveal a bearish bias, an observation that raises a massive concern in light of the fact that the price may get pushed down due to higher sell pressure.
Finally, momentum-wise, both the bears and bulls were under the radar for Tezos, with the Awesome Oscillator highlighting minor red candles on its price charts.
Tezos will register a price rise in the next few weeks, but breaching $2.42 will be difficult. Consolidation under that price range can be expected at least until the turn of the year.
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