Tezos Faces Uphill Battle In Massive 58% Correction: Analysis

Tezos faces uphill battle in a recent massive 58% correction and wants to stage a near-term price recovery but there’s a key hurdle that has to be overcome first.
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In today’s Tezos price news, we are reading more on the price analysis.

The parabolic SAR and MACD suggest that Tezos is preparing for a bullish impulse but the smart contract token faces stiff resistance ahead. Only a candlestick close above the 100-twelve hour moving average will add more credibility to the optimistic outlook. The token is facing an uphill battle after falling more than 58% but there are still several technical indexes that suggest that the top 20 cryptocurrency is on a way for higher levels.

When looking at Tezos’s price action on the 12-hour chart, the token was contained in an ascending parallel channel for the past month. Each time the coin increased to a technical formation upper boundary, it gets rejected and retraces to the lower edge but from this point, it tends to rebound and remain consistent with the characteristics of the channel. Following the retest of the underlying support as many buy, orders got filled which allowed Tezos to bounce back up. The bullish impulse was capped by the middle line of the ascending parallel channel.

Multiple technical indexes suggest that this cryptocurrency is poised to advance towards the overhead resistance at the $2.5 level. The parabolic stop and reverse point or SAR add more credence to the optimistic outlook. The following indicator forecasts that the Tezos downtrend reached exhaustion as the SAR point moved below the XTZ price which can be considered as a very positive sign. The SAR metric was highly effective in determining the course of the altcoin. The past two times the SAR flipped from bearish to bullish in the 12-hour chart as Tezos’ price surged by 17% and then 12%.

The moving average convergence divergence or MACD turned bullish as well within this timeframe. As the 12-hour exponential moving average crossed the 26-twelve-hour exponential moving average as the odds for a further bullish impulse increased dramatically. While the odds are in the bulls’ favor, Tezos faces uphill battle ahead. The 100-twelve-hour moving average and the middle line of the parallel channel mentioned seemed to be preventing the altcoin from achieving its upside potential. Only a candlestick close above the hurdles will help validate the optimistic outlook.

If this happens, the next critical areas of interest to pay attention to the channel’s upper boundary at the $2.5 level and the 200-twelve hour moving average at $2.8. If sell orders start to pile up, Tezos lost the 50-twelve-hour moving average as support with the short-term forecast turning bearish.