Tezos Risks Further Decline if the $2.02 Support Is Breached
In the last bearish impulse of October 2, Tezos (XTZ) fell to $2.02 low. The price was corrected upward and retested the $2.15 high.
After the retest, the coin resumed the downward move. The current downward move is expected to retest the support at $2.02. The bottom line is that if price breaks the support level, Tezos risks further downsides.
However, if the current support holds, the coin will commence the resumption of an upward move. Alternatively, buyers may want to interrupt the current downtrend and move price upward. In that case, buyers must push price above the $2.50 to resume the upside momentum. Otherwise, the downtrend will persist. At the upside momentum, the bullish trend will resume as price continues to trend higher. Meanwhile, XTZ has fallen to $2.11 at the time of writing.
Tezos indicator reading
Tezos price is facing rejection at 12-day EMA. The market will only rise if price breaks above the EMAs. In the meantime, XTZ is below the 40% range of the daily stochastic. The coin is in a bearish momentum and may continue to fall.
Key Supply Zones: $4.50, $4, $3.50
Key Demand zones: $2.50, $2, $1.50
What is the next direction for Tezos?
From every indication, the crypto is likely to make a further downward move. After the breakdown on October 2, the last retraced candle body tested the 61.8% Fibonacci retracement level. This suggests that the coin will fall to the low at 1.618 Fibonacci extension or $1.86 low.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
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