Tezos Risks another Decline if $2.30 Support Is Breached

Tezos (XTZ) has been making an upward move for the past four days. The crypto is facing another rejection at the $2.40 resistance.

The altcoin risks another decline if the $2.30 support is broken. On December 2, the crypto faced a similar rejection as the coin plunged to  $2.04 low. 

However, if buyers hold the current support, the current uptrend will resume. Nevertheless, the candlestick wicks are pointing upward at the resistance zone. This implies that there is selling pressure at a higher price level. The altcoin may resume a downward move if the selling pressure persists.

Tezos indicator reading 

The price has broken below the trend line. The implication is that the previous trend has been terminated. The coin is likely to resume a downward move. The daily stochastic is indicating that the coin has bullish momentum. However, the price action is indicating bearish signals.

Key Supply Zones: $5.50, $6, $6.50

Key Demand zones: $2.50, $2, $1.50

What is the next direction for Tezos?

Tezos is likely to resume another downward move. The Fibonacci tool has indicated a possible decline of the coin. On December 19 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This indicates that the market will fall to level 2.0 Fibonacci retracement level. That is, the crypto will decline to a low of $2.15

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.