Since its all-time high last year, Tezos (XTZ) has been continuously falling, hitting new multi-monthly lows. The altcoin has been trading in the £1.00–£1.33 range for the last three weeks. Amid recent rise in buying pressure, XTZ experienced an up-channel oscillation on the four-hour timeframe.
XTZ could experience short-term losses considering the recent rejection of increased prices in the £1.25-region. At the time of writing, it was trading at £1.26, up about 3% over the last day.
The last bearish pull from the £1.83 level experienced an almost 50% retracement as it broke through several significant price levels. Consequently, the price action was pushed below the EMA ribbons.
Since the coin’s 27-month low on June 19, however, the bulls have gradually recovered. This recovery was caused by a number of things, one of which was the buyers’ willingness to continue their two-year support in the £1.00-zone.
In recent days, buyers were able to retake a position above the EMA ribbons thanks to an up-channel that was seen by XTZ.
The sellers could eye for a breakdown as the price gets closer to the up-channel’s lower trendline.
The potential shorting opportunities in this scenario would be around the £1.18-mark. But if the bullish trend continues, testing resistance should be found close to the £1.25-£1.65 range.
At the time of writing, the RSI had finally moved over the midline but still indicated a neutral position. From this point on, a rebound from the midline could enable the continuation of the patterned oscillation on the chart. A descent below this level, though, would indicate a change in momentum.
A bullish bias was also visible on the DMI. For a significant breakdown to occur, the lines still needed to see a bearish crossover. The MACD lines, on the other hand, confirmed an easing buying pressure with a bearish crossover.
If the bears break through the lower trendline of the up-channel, XTZ could face a near-term downside, with the aforementioned targets unchanged. The £1.25-£1.33 range could continue to act as resistance for any prospective buying rebound.