Tezos (XTZ) price managed to hold on to important things over the weekend as it continued a bullish triangle at the monthly pivot at $1.66 and just above the technical moving average set for buying.
All current bullish scenarios were shelved as the mood shifted on Monday morning with the Asian PAC’s deep negative numbers as more supply chain issues emerged with the curfew imposed in several major cities in Shanghai. Added to this problem, added to the energy crisis in Europe and speculation of higher inflation in the US, it would be difficult to say that cryptocurrencies are a place investors want to be in because the “bear market” is increasing its strength.
Tezos Has To Deal With Bigger Problems
Tezos priceIt is struggling to break above the bottom of the bullish triangle at $1.66, the monthly pivot for July. Unfortunately, the bulls needed three tests and eventually failed to break above the level and attempted to move towards the 55-day Simple Moving Average (SMA), which came just above the pivot. Seeing the XTZ price action take a step back along with the significant drop in the stock market, you can expect this trade to wobble and experience a massive crash as a result.
If the green ascending trendline breaks down, XTZ price will indicate the end of this bullish triangle. With “six confirmed tests” for support, this trendline is extremely important and therefore, when broken, it will send a signal to traders that they should beware. After this signal, XTZ price will pull back all gains and drop to $1.30 for July, erasing all gains, and may even test new lows for the year as low as $1.20.
With a fix this early in the week, a reversal will usually be triggered later in the week. After that sell-off, it means that the worst-case scenario for Tezos for this week is over and it could only see some upward pressure with the monthly pivot and a break above the 55-day SMA.
This should make some room for an extended area towards $2.10 as the monthly R1 resistance and the upper side of the long-term trend channel limit price action for now.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.