Tezos Defends Key Support, But May Struggle to Reestablish Momentum
Tezos, like many mid-cap altcoins, has been witnessing mixed price action throughout the past several days and weeks, struggling to maintain the momentum that it established throughout July and August.
The cryptocurrency is now caught within what appears to be an extended consolidation phase, with it forming a relatively wide trading range between $3.20 and $3.50 over the past few days.
XTZ visited the lower boundary of this range earlier this morning when its price saw a flash crash to these lows. The rebound here was intense, and it has since been able to climb towards the mid-$3.00 region.
Analysts are offering mixed outlooks on the cryptocurrency, noting that although it has been able to defend a critical support level, it remains in a somewhat precarious position due to its inability to break above a few crucial descending trendlines.
Tezos Consolidates as Momentum Continues Stalling
At the time of writing, Tezos is trading up just over 5% at its current price of $3.40. This marks a notable upswing from its recent lows of $3.20 that were set earlier this morning.
The cryptocurrency’s ongoing bout of sideways trading has done little to offer insight into its mid-term outlook, as it has been struggling to maintain the momentum that led it from lows of $2.25 in early-July to highs of $4.40 earlier this month.
One analyst is noting that XTZ is now rapidly approaching a key support region that analysts have been watching for quite some time. A defense of this support could send it flying back up to $4.00, he said.
“Still looking to accumulate some XTZ in these regions, before it goes to $4,” he explained while pointing to the chart seen below.
Image Courtesy of Crypto Michael. Chart via TradingView.
These Trendlines Could Stunts XTZ’s Growth
Another respected analyst explained that Tezos is stuck beneath some key descending resistance levels seen while looking towards its Bitcoin trading pair.
As such, he believes that it may struggle to gain any momentum in the near-term.
“XTZ still has a lot of work to do to reverse the short-term downtrend – Note unbroken downtrend lines on both BTC and USDT pairs.”
Image Courtesy of Cheds. Chart via TradingView.
Whether or not Bitcoin continues pushing higher while mid-cap altcoins remain stagnant should offer insight into its near-term trend.
Featured image from Unsplash. Charts from TradingView.