Tezos stops its rally after 100% growth

Today again we have a bearish start for the major cryptocurrencies. Yesterday, Bitcoin and all major altcoins suffered losses on a daily basis with the only exception of Chainlink (LINK).

At the time of writing, total market capitalization is $ 196.95 billion. Bitcoin dominance remains at levels below 67% after major losses. The steady sell-off managed to pull investors away, with trading volume reaching $ 60 billion before settling down.

 

Who are the winners and losers of the day?

The Chinese Center for Information and Industry Development has released its latest revision of its crypto index. This index evaluates the technology, applications and creativity of blockchain projects. The first position is occupied by EOS, followed by Ethereum, and the third is TRON. Bitcoin ranks ninth in this ranking.

Among the top 100 cryptocurrencies, the best of the day was ZEN (+16.13%), LINK (+8.62%) and STEEM (+4.64%). In the red were RVN (-21.41%) and (-19.16%). But MATIC was the biggest loser yesterday, falling 50%.

The Tezos case is a little more interesting. In just 24 hours from the best performing coin, the asset became one of the biggest losers. The coin dropped by more than 8% on a daily base against the background of the strong bearish pressure caused mainly by technical factors.

 

Technical analysis of Tezos

Tezos became one of the most active altcoins in 2019, with the XTZ token giving returns more than three times in dollar terms after the ICO, as well as 4X returns against ETH appreciation. Also, over 42% of XTZ volumes are going against Tether (USDT).

Technically, at the beginning of the month, Tezos’s price continued to make higher lows on the 4-hour chart, which usually marked an upward trend and broke the formed triangle in early December. Accordingly, we saw XTZ/USD test the next resistance area at $ 1.60.

But at the same time, the RSI indicator began to show bearish divergence, which generally marks a potential reversal of the trend. On a daily chart, the RSI also turned from the overbought area and is pointing down now. This means that the coin may continue its downside correction in the near future.

The first support to keep track of is $ 1.30. It was created by the middle line of the daily Bollinger Bands and the H4 50 SMA. A clear break below this area could extend the sells to $ 1.26. There is located a 200-day moving average on the 4-hour chart.

On the other hand, if the price manages to keep above the support of 1.30, then we will probably see another Tezos’s test of the resistance zones around $ 1.65 and $ 1.85 (the August and May highs).

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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