Tezos Could Head Back To $1.30 If It Breaks Below Support Level

Tezos could head back in a dangerous level back to $1.30 if it breaks below key support levels as we are reading in the tezos news today.

Tezos saw a huge 9% price drop over the past 24hours of trading and the cryptocurrency dropped into the $1.54 price level. XTZ had a hard time at the $1.80 resistance level for the past few days which caused the coin to drop again. Tezos could fall again after the 9% drop of today since it is trading above the short term rising trend line. We can even see XTZ towards $1.30 again. It still remains ranked in the top 10 positions and has a market cap of $1.08 billion.

Looking at the daily charts above, we can easily see that Tezos dropped from the previous high of $3.35 during the entire month. Now it dropped as low as $1.30 as the market collapses. XTZ has since rebounded and started to make higher closes every day as it trades above the rising trend line. Over the past few days, the cryptocurrency was struggling to break the resistance at $1.80 which is provided by the bearish .256 Fibonacci Retracement level which caused the coin to drop and drop the support at the rising trend line.

Tezos is currently trading within a consolidation pattern but a drop beneath this trend line could send the coin into bearish trajectory. If Tezos breaks beneath the trend line, the first major level of support is located at $1.40 provided by the .786 Fibonacci Retracement level in the long term. Beneath this, the support can be found at $1.30, $1.20 and $1.06 from the .886 Fibonacci Retracement Level.

On the other hand, if the buyers manage to rebound from the support line and push higher, the first resistance level will meet them at $1.84 while above this level, $2.00 is expected from the .382 Fib Retracement level. The RSI is showing weak spots as it is leaving the 50 level and heads down to show how the sellers are in charge of the market momentum.

Also as per the recent news, Tezos settled the outstanding class-action lawsuit after they calculated that the longer it takes to finish this process, the company will only lose more money. The long-running legal battle concerned the $232 million initial coin offering that was held in 2017 and there were some allegations that it was actually an unregistered securities sale.