Tezos (XTZ) has been steadily falling from its all-time high in 2021, while finding cooler multi-month lows. Over the past three weeks, the alt has been hovering between $1.2 and $1.6. With the recently increased buying pressure, XTZ saw an ascending channel swing (white) within the four-hour time frame.
Looking at the recent rejection of higher prices in the $1.5 region, the alt could see short-term setbacks. At press time, XTZ was trading at $1.517, up nearly 3% in the past 24 hours.
XTZ 4 hour chart
The previous downside pull of the $2.2 mark saw a nearly 50% retracement as it crossed through many vital price levels. Thus, pushing the price action below the EMA ribbons.
However, the bulls have shown a gradual resurgence since the alt’s 27-month low on June 19th. This rally stems from many factors, one of them being buyers’ desire to hold the two-year support at the $1.2 area.
Over the past few days, XTZ has seen an ascending channel that has helped buyers reclaim a spot above the EMA ribbons.
As the price approaches the lower trendline of the rising channel, sellers might try to search for a breakout. In this case, the potential short sell targets would be at the $1.414 mark. However, a continued bullish rally should find test resistance near the $1.5-$1.6 range.
The Relative Strength Index (RSI) eventually found a place above the midline, but still revealed a neutral stance at press time. Going forward, a potential rally from the midline could help bulls continue the schematic swing on the chart. But a drop below that level could portend a change in momentum.
Additionally, the Directional Movement Index (DMI) showed a bullish bias. The lines still had to observe a bearish crossover to make way for a strong breakdown. However, the Moving Average Convergence and Divergence lines (MACD) have experienced a bearish crossover and confirmed the easing of buying pressure.
XTZ might be eyeing a short-term decline if the bears cross the lower trendline of the bullish channel. The objectives would remain the same as above. A potential resurgence in buying could continue to find resistance near the $1.5-$1.6 range.
However, Bitcoin’s movement and general market sentiment should be considered as a complementary tool to make an accurate decision.