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Tezos is no longer in the same league as the crypto industry’s giants in terms of market capitalisation. Interestingly, despite the recent increase in bearish pressure in the altcoin industry, Tezos has not been adversely impacted by the bears. The coin has been trading sideways for over a week, and the pattern has continued in recent days. However, if the coin is unable to break out of this sideways trend, it risks falling even more in the coming week, since the breakout is expected to be southbound.
XTZ was valued at $3.92 at the time of publication, with a market capitalisation of more than $2.9 billion.
Tezos 1-day chart
Tezos’ price remained extremely rangebound at the time of publishing. Although the coin has fallen nearly 10% in the last week, its price action has been limited to the resistance at $4.5 and support at $3.8. However, if bearish pressure begins to build in the coming days, XTZ may end up breaking its immediate support and converting it into a high level of resistance.
This occurred in the case of its current resistance level of $4.5, as the coin dropped below this level at the end of February.
On the opposite, given the market’s volatility, it is impossible to predict whether the rangebound price activity will persist or whether it will culminate in a southbound breakout.
The cryptocurrency’s technical indicators painted a bearish image, suggesting that the press time support could be flipped to become a key level of resistance. The MACD indicator started to decline after a bearish crossover, while the RSI indicator was deep into the oversold sector.
With investors rare and the demand dominated by dealers, the coin’s recovery over the next week could be incredibly difficult.
Tezos has been trading largely horizontally since the beginning of March and was still doing so at the time of release. If the coin begins to lose bullish traction, it would be difficult for XTZ to retain its current price level. As a result, its support level may fail, allowing XTZ to drop more and trade near the $3.5 to $3.8 price range in the coming week.