Hello traders and hodlers! Let’s what XTZ is doing today and do a complete Multi Time Frame Analysis (MTFA)!
In the hourly chart, Tezos is struggling a lot, as the bears are dominating the crypto. It did lose the purple trendline, which was the first sign the trend was going to get weaker, but now it is doing descending tops and bottoms, a trait of a bear market.
Right now, XTZ is doing what it was supposed to do in a bear market: Seeking previous supports. It is very close to the pink line, and the next target would be the blue line around$ 3.21. Beyond this point, there’s the yellow line at $ 3.10.
If XTZ closes above the green line, we’ll see some good rection. Let’s see the daily chart:
Yes, the situation is bearish for Tezos, as it is still trading under the 21 ema. But the good news is that we have a clear support at the purple trendline, and the red line is another important point. If XTZ closes above this level, it will be a good sign in the daily chart.
This is important, because the reaction must start at the hourly chart, by closing above its green line. Then, it might have the strength to close above the red line in the daily chart and do a false breakout from a bearish pivot. All near the support at the trendline.
If XTZ is going up, now is the perfect time for a reaction, and we are going to have our answers quickly, in the next few hours/days.
Either way, let’s see the weekly chart:
Technically, there’s still room for XTZ to drop. It could retest the black line at $ 3.1294, or hit the 21 ema, which is something we don’t see since this bullish engulfing.
My opinion: I’m neutral on XTZ, and I’ll only be bullish if we see the reaction mentioned above. I’m skeptical about a further drop to meet its supports at the weekly chart, but I don’t discard this scenario. Therefore, I’m neutral, at least for now.
And if this idea helped you, please, support it! And I invite you to follow me to keep in touch with my daily analyses!
I applaud for your effort! These days the price action is so bizarrely weak that I don't feel confident in predicting with TA, it's like many previous good setups for break out but it always finds a way for further downside, especially uncanny if we look at XTZ/BTC or worse for XTZ/ETH pair. Clearly many are viewing XTZ as a risky asset and switching to crypto "safe haven", the BTC and ETH.
B_Musk
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@AryaxS, very bizarre, XTZ seems artificially suppressed right now
AryaxS
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@B_Musk, Yeah for someone who has been following the price action on a daily basis I can feel that. Do you know if there is a place to short XTZ? Maybe some whale is shorting it
B_Musk
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It’s been like that since we approached the 4.4 zone, this should have gone above 5. Yes you can short up to 3x on Kraken
AryaxS
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@B_Musk, Oh OK so is there a way to check open interest etc on Kraken?
Nathan_Black
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@AryaxS, Hey there! Yes, a lot of cryptos are moving erractly lately, and is quite hard to do anything regarding TA. But easier times will come.
Trade well, AryaxS.
AryaxS
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@Nathan_Black, So yeah...another wild day where TA doesn't make sense! We literally had a bullish engulfing close yesterday only to witness a bloodbath today(potentially even a bearish engulfing), very interesting days to learn the market and that's why I'm not keen to publish any ideas at this time.