XTZ Undergoes Major Correction As Bulls Aim $3 Price Level

XTZ undergoes a major correction across the trading pairs as the buyers wait for repeat actions. A strong rebound at the ascending trend line which will continue for the bulls. The price is trading close to a key psychological level but the bears are aiming further gains as we are reading further in the Tezos price news.

Over the past week, Tezos touched the $3 price level following the 200% gains in the past months. The 10^th largest cryptocurrency, XTZ undergoes a correction following the losses overnight and it is led by a 6% drop in BTC price. Because of the bearish action, Tezos is now trading around the $2.82 mark and above the weekly support at $2.57. if this support level breaks, there is a strong hope for a rebound at the 8-week ascending which can be seen at the 4-hours chart. If another breakdown happens, the yellow line will fail to provide a rebound for the asset and it might lead to a major drop in price. The bullish trajectory remains valid on the 4-hour time frame.

While Tezos reaches the $2.57 as seen on the price charts, the next support to keep in mind is the lower level of the yellow ascending line at the $2.37 in case of a breakdown. The bearish correction may extend to a key support level at $2 and $1.8 if Tezos continues to fail. A nice rebound of the ascending line will signal a fresh bullish cycle which will eventually reach a $3.5 on the upside. The key resistance is located at $2.88 followed by the April high of $3.06.

Since the previous analysis, Tezos continues to follow a weakness level as bears look for a selling opportunity in the market. The buyers are provided with a good discount rate. The XTZ price lost momentum to the 37940 SAT on April 26 as the bars resume pressure. The sell action could trigger more losses to a key price level considering the red ascending trend line that was formed in 2019, the XTZ mid-term bullish is looking positive on the charts.

The daily support to watch for now is at the 27860 SAT which is followed by the 25000 SAT area which corresponds with the red ascending line. If Tezos manages to recover from the current price level of 3000 SAT as the buyers would target the 37940 SAT in the next bullish actions.