XTZ/USD price has declined 5% today but could rebound by more than 20% if bulls maintain upward pressure towards a key level

The price of Tezos’ token XTZ is changing hands around $2.13, up from 24 – hour lows of $2.04 registered yesterday. The token’s price however remains nearly 5% down during this period.

The downtrend witnessed over the past week had seen Tezos bulls finding it hard to crack resistance at a key level, which meant a potential retest of recent lows.

XTZ/USD on the 1 – hour price chart suggests an ascending parallel channel is forming. However, the upside is capped around the current price level, with the SMA50 and SMA100 providing key hurdles. The bounce on the hourly chart is likely to happen given the upturned RSI.

A break above the moving averages could see buyers push for prices around $2.2, which suggests a 20% uptick from current levels.

XTZ/USD 1-hour chart. Source: TradingView

The outlook on the 4 – hour chart is also positive as seen in the three green candles with lower highs and higher lows. It appears that the bulls are trying to defend gains after slipping below the SMA50, SMA100 and SMA200.

The moving averages are clustered around $2.18 and $2.22, which means a break above these levels could give bulls the motivation to attack resistance around $2.40. The MACD is suggesting a bullish divergence, while the RSI remains upturned after climbing out of the oversold territory.

Although bulls are targeting a break above $2.2, the outlook will turn bearish if downward pressure cracks the lower limit of the formed ascending parallel channel.

In this case, bulls will have to defend the support zone around $2.10 below while bears could easily plunge XTZ/USD to $2.04. An extended downside means that the next target for bears is $1.9.

Altcoins seeing red

As the Bitcoin price looks to hold gains above $12,000, most altcoins are registering losses or insignificant upsides which suggests that the money is flowing into the top cryptocurrency.

Ethereum’s price as a percentage of Bitcoin is down to about 3%, with the Ether bulls likely to cede the initiative to the bears if the price tanks below $350.

Zcash (ZEC) and NEM (XEM) are among the biggest losers with their respective prices tanking by more than 10% in the past 24 hours. ChainLink (LINK), Filecoin (FIL), and Crypto.com Coin (CRO) are down 4%-7% on the day.

Among the top 20, TRON (TRX) with +3.5% and Litecoin (LTC) with +1.6% on the day are showing signs of strength.

While top altcoins continue to struggle, nearly $2 billion has been wiped off the total altcoin market cap in just 24 hours. Meanwhile, Bitcoin’s dominance index has jumped to 60.6%, according to data from CoinMarketCap.