Tezos Needs to “Take Out” This Key Level to Avoid a Sharp Downturn
Tezos has seen some strong price action in recent weeks, with the cryptocurrency pushing as high as $4.40 earlier today before hitting some heavy resistance that slowed its ascent.
Despite this strength, the crypto may be in a precarious position due to its inability to take out its weekly pivot against its Bitcoin trading pair.
One trader is noting that a failure for the cryptocurrency to break above this crucial level and post a high time frame close above it could ultimately create some downwards momentum that invalidates its recent strength.
That being said, while looking towards its USD pair, its recent consolidation phase within a classic bull-favoring pattern seems to be drawing to a close, with analysts now eyeing massive upside.
This could help it gain against BTC, invalidating the weakness that it is currently facing.
Tezos Struggles to Take Out Key Bitcoin Level
At the time of writing, Tezos is trading down just under 4% at its current price of $4.08, marking a sharp decline from its daily highs of nearly $4.40.
XTZ has been caught within an unrelenting bout of sideways trading throughout the past week. This has led it to range between lows of $3.90 and highs of $4.50.
Its inability to rally alongside many of its peers seems to point to some underlying weakness, although it was able to incur some notable strength last week that led it from lows of $2.80 to highs of $4.50.
The stalling momentum seen by Tezos has led it to show signs of weakness against its Bitcoin trading pair.
While speaking about this, one analyst explained that the crypto has failed to take out its weekly pivot on the XTZ/BTC pair, with a failure for it to do so in the near-term potentially striking a blow to its strength.
“XTZ / Tezos – Need this to take out the weekly pivot ASAP or this starts to look bad (BTC pair),” he said while pointing to the below chart.
Image Courtesy of Calmly. Chart via TradingView.
This Pattern Suggests XTZ’s Consolidation Phase May Be Followed by a Sharp Upswing
To justify this outlook, he is pointing to the crypto’s consolidation phase within what appears to be an ascending triangle.
“After a few days of consolidation XTZ is eyeing higher,” he explained.
Image Courtesy of Jonny Moe. Chart via TradingView.
Where Tezos trends next may be somewhat dependent on the aggregated cryptocurrency market, but it must gain against USD to invalidate its BTC trading pair’s current weakness.
Featured image from Unsplash. Charts from TradingView.