Today’s Technical Analysis – XTZUSDT – a break out is imminent as volume continues to decline; key structural levels are likely to be tested.
Points to consider, - Trend bullish (consecutive higher lows) - Trend line support holding true - Current resistance .618 Fibonacci - RSI above 50 - Stochastics projecting down - Declining volume
XTZUSDT’s trend has been putting in consecutive higher lows, now trading in a range between two important levels, monthly resistance and daily support.
The current trend line support is holding true, a higher low projection will be at play until the trend line has been breached.
Immediate resistance, the .618 Fibonacci is to be breached for a test of monthly resistance; price has been rejected multiple times.
The RSI breaking below 50 will negate any bullish bias in the market. The stochastics are projecting down, this a sign of momentum shifting.
XTZUSDT’s volume is clearly declining, an indication of an influx in volume being imminent as key structural levels get tested.
Overall, in my opinion, XTZUSDT is approaching a key technical level where a break will be imminent. A long trade will be valid above monthly resistance. Breaking below daily support will validate a short trade. The break needs to be backed with increasing volume; this will help avoid fake outs.
What are your thoughts?
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And remember,
“This lack of support is not simply an absence of encouragement. It can be as deep as the outright denial of some particular way in which we want to express ourselves.” ― Mark Douglas