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At press time, Bitcoin’s economy was once again seeing uncertainty, with its bearishness spreading to the altcoin market as well. Tezos [XTZ], which has a market capitalisation of $5.09 billion, has been declining recently, losing about 20% of its valuation in the last week.
At the time of publication, XTZ was valued at $6.28, with a support level of $5.74.
Tezos daily chart
Tezos’ daily chart traced its rise from $1.95 to $6.49 after the start of the year. This represents a 231 percent increase, and despite the market’s current uncertainty, the alt’s price has remained remarkably stable.
Despite the recent depreciation in the valuation of XTZ, the market was seeing a degree of bullishness that could help the stock ascend higher and re-test the resistance at $6.50.
Since April, the price has formed crests and troughs, with the alt climbing from $4.34 to $7.72, as seen in the attached map. The cryptocurrency price has been unable to hold onto this high valuation, but has been attempting to build enough momentum to challenge this amount once more.
Such attempts have moved the market towards greater uncertainty, but recent corrections have culminated in the coin moving less. The diverging Bollinger Bands were now converging, emphasising the retracing uncertainty. Meanwhile, when the price stabilised from $5.74, the Signal line passed under the candlesticks.
Tezos’ price level was accepted by traders as long as the Relative Strength Index stayed stable. This indicated that the purchasing and selling forces remained equal. However, when the market began to rebound, so did the purchasing pressure. This seemed to be driving investors into the XTZ market, which could contribute to the alt’s valuation that in the long run.
Crucial levels to watch out for
Take profit: $7.44
Risk to Reward: 1.41
Tezos was on the mend after losing its foothold at a high price range and declining at the time of publication. As the cryptocurrency’s valuation recovers, the market will experience more bullish pressure throughout the coming months.