Battle of the smart contract platform begins. Last year was all about Tezo's and Chainlink - I think the spotlight will be shinning elsewhere in the coming months. This 4-day chart of Tezos vs Ethereum shows a bearish divergence within a rising wedge pattern since December 19. The 4-day chart prints a new candle today and we can already see it is most probable that it'll break down. Volume is also slowing down.
Generally I'm bullish on Tezo's, but not right now. Not until that RSI resistance trend line breaks and become support, which is sometime early next year. Ethereum all the way this year folks.
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Much more downside to come against Ether for as long as that RSI resistance continues to exist. Currently it is suggesting until the end of the year - I've placed an an alarm on this very trend line!
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Not long now until price action consolidates on the golden ration. Currently in a falling wedge, must break out and then test as support before new uptrend begins - no rush.
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That's it folks - time to rotate back into Tezos. 80% drop.
@without_worries, Are you waiting for the 0.786 Fib as that seems like a long term support? I see 12h divergence so I'm expecting a break out soon.
without_worries
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@AryaxS, Yes, it should offer some support, but it is by no means the bottom. Look at the RSI resistance, it potentially continues until November. Even then we need a break out and higher lows before we can confirm a trend reversal.
My approach will be to scale back in a week at a time around the golden ratio, there'll be no rush - consolidation takes time.
AryaxS
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@without_worries, Right makes sense! I am also thinking around nov is the break out time. I am more optimistic at that being a good resistance/support flip and the slumber is in my eyes a test for that. Need some good news to start a new found optimism in XTZ. Otherwise it will play out like you expect.