Tezos (XTZ) – developing in a downward sloping channel
Posted on Monday, November 1 2021 at 9:08 pm GMT+0000Tezos (XTZ) – Short-term analysis
Tezos (XTZ) has been developing in a downward sloping channel since the beginning of October, with the price recently deflecting down near the upper frontier of this strucure.
The negatively aligned 50- and 100-day simple moving averages are still defending the negative short-term outlook. Furthermore, momentum oscillators are indicating that negative momentum is picking up again. The MACD, some distance below zero, is persisting below its signal line while the RSI shifted back southwards in the negative territory.
If the decline prevails, preliminary support could develop around October low of 5.63. Some distance below, defenses could stem from September 29th low of 5.34 and the 161.8% Fibonacci projection level of the 5.63 – 6.78 up-leg at 4.93. Deeper declines could meet the current channel’s lower boundary and the 4.48 September bottom.
Otherwise, if buyers start to push back and manage to overcome the channel’s upper border and the latest top of 6.78, a bullish price reversal pattern will be activated that could shift the short-term bias and turn the focus towards the 7.22 and 8.00 levels.
