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Tezos’ price has risen by more than 9% in the last 24 hours, and it has been doing so since the last week of March. However, a glance at the altcoin’s price charts reveals that XTZ has recently drifted sideways, prompting us to wonder if XTZ will face another short-term correction.
At the time of publishing, the price of XTZ was $7.12, with the cryptocurrency having a market capitalisation of more than $5.4 billion.
Tezos 1-day chart
Although Tezos’ market action has been promising since the end of March, the past week has seen most of its upward momentum stall due to the high resistance level around $7.7. The coin has attempted to breach this threshold many times in the last few days, but has failed each time.
If the breach is not effective and the resistance level is not flipped to a support level in the next 24 hours, the coin may face renewed bearish pressure in the market.
The two support ranges at $5.6 and $4.6 could be critical for the coin in the coming week, and it is difficult to decide if a short or long stance will be better considering the present trading situation and the coin’s consolidation process at press time.
In the short term, the technological metrics seemed positive. However, if one considers previous precedents, the RSI indicator, which was in the overbought zone at press time, can drop to the 60-level, triggering a minor price correction.
On March 28, the MACD predictor made a bullish crossover, indicating that a turnaround is highly doubtful. When compared to where the Signal line and the MACD line were at the beginning of the week, it is clear that the Signal line has narrowed the gap and will attempt to pass over the MACD line.
Since the last week of March, the price of Tezos has done admirably. However, the coin’s bullish momentum has dwindled in recent days, causing it to trade sideways. If the high resistance level is not broken in the coming days, a price drop is likely, pushing the coin into the $5.6-price mark.