After some very bullish momentum yesterday evening, many people expected the Tezos price to break $3. That has not happened as of yet, as the price has re-entered the accumulation zone today.
Tezos Price Bull run Hits a Snag
It was somewhat to be expected. After monster gains in quick succession, the Tezos uptrend needed to calm down a bit. It has now come back to more normal levels between $2.6 and $2.65. Those who chased the top yesterday shouldn't despair yet, as the overall bull trend remains in full effect for a while to come.
With Bitcoin becoming more volatile, all markets are struggling a bit. Some extra accumulation is never a bad development, assuming it doesn't last for weeks on end. In the case of Tezos, such an extensive accumulation period seems unlikely. However, it all comes down to Bitcoin's momentum first and foremost. That still looks relatively fragile, but not in a worrisome manner.
For Tezos, the overall trading volume should prove sufficient to prevent any major dips. Strong volume is generated by Binance, Coinbase Pro, and MXC at this time. Barring any major Bitcoin mishaps, the Tezos price will return to the $2.8 range fairly soon. Today is a blip on the radar, albeit a necessary one.
XTZ/USDT Technical indicators
Bollinger Bands: On the 4H Tezos price chart, the Bollinger Bands remain as wide as the Grand Canyon. That is a bit odd, as it seems some accumulation has taken place today. Even so, there is ample liquidity to keep this market going in either direction. No issues are expected in the short-term, albeit the minor volatility may remain a factor throughout the day.
Moving Averages: The only real change regarding the MAs is how they are all sloping up still. The MA20 remains well ahead of the MA50, which is on par to surpass $2.2. As far as the MA200 is concerned, it remains well below the current threshold, but slopes up nicely. As such, no real change in momentum is expected, at least for now.
RSI: XTZ has managed to stay in the upper regions of "overbought" territory and survived the dip without too many problems. That is very indicative of the resilience of this particular market. What goes up must eventually come down, but it seems that is not about to happen in the coming days, barring a minor dip for a few hours.
Fibonacci Retracements: Even though Tezos isn't close to a Fib level per se, they do come into play. The steep dip earlier today tested the previous Fib level and got rejected rather violently. That is a good sign overall, albeit a second test is not out of the question. Reaching the upper Fib level of $2.746 has proven difficult, as it has been rejected twice already. Three times is the charm, as they say, but crypto markets play by their own rules.
Resistance Levels: Following yesterday's surprise surge, finding key resistance levels isn't easy. The Tezos price has struggled to break $2.66 in a definitive manner so far. There may be some more resistance near $2.7387 and $2.7506.
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