Tezos Recovers above $3.0 Support, Resumes Upside Range Correction

Tezos has finally slumped to the low of $3.10 after buyers failed to break the $4.40 overhead resistance.

Since August 12, the selling pressure has been overwhelming at the $4.40 overhead resistance. Sellers pushed prices to $3.40 low. At the $3.40 support, buyers have temporary possession of price. The coin rebounded above $3.40 and rallied to $3.80 high.

However, after the retest at the $3.80 high, Tezos plunged to the support at $3.10. The recent fall made the coin reached the oversold region of the market. In the oversold region, the selling pressure has reached bearish exhaustion. Buyers are likely to emerge to push prices upward. Tezos (XTZ) has resumed an upward move as the coin trades above $3.30 high.

Tezos  indicator reading 

The coin is in a bullish momentum below 20% range of the daily stochastic. It indicates that the coin is in the oversold region. The coin is in a bearish trend zone as price bars are below the EMAs. The price is attempting to break above the EMAs. A break above the EMAs will accelerate price movement on the upside.

Key Supply Zones: $4.50, $4, $3.50

Key Demand zones: $2.50, $2, $1.50

What is the next direction for Tezos (XTZ)?

The crypto has been on a downward move after rejection from the $4.40 resistance. On August 21 downtrend, XTZ fell to $3.40 support and retraced. The retraced candle body tested the 78.6 % Fibonacci retracement level. This candle body indicates that the coin will fall to the low at 1.272 Fibonacci extension level and reverse. When the coin reverses, it will return to the 78.6% retracement level where it originated. Tezos downward move is presumed to have ended.

Disclaimer. This analysis and forecast are the personal opinions of the author and not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.

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