Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The cryptocurrency market has seen major corrections lately. In fact, Bitcoin itself has oscillated violently between $45k and $49k for most of the last 7 days. This resulted in the market’s altcoins mirroring the king coin’s losses, with the overall market trend momentarily favoring the bears.
Thanks to the aforementioned corrections, Tezos, with a market capitalization of $2.68 billion, has been pushed lower down CoinMarketCap’s charts. However, given the gap between Bitcoin and Tezos, the price of the altcoin has managed to hold on to a significant price level.
Tezos 4-hour chart
Source: XTZUSD on TradingView
XTZ’s 4-hour chart highlighted that Tezos’s price had dropped under $3.5 towards the end of February. However, despite the strong bearishness in the market, the value of XTZ climbed over the said price scale, with the alt trading at $3.71 at press time.
In fact, Tezos’s value has been consolidating between $3.5 and $3.8 after breaking out of a descending channel. Given the ongoing price trend in the market, XTZ’s sideways movement on the charts may continue.
Reasoning
The Bollinger Bands were indicating that the volatility had shrunk since the bands were converging, at press time. With volatility escaping the market, XTZ may not witnesses a price swing anytime soon.
The Awesome Oscillator underlined that selling was in progress. However, since the market momentum was escaping, the same may flip to the negative side soon. This was another sign that there could be more consolidation in the XTZ market.
Following the breach of the aforementioned pattern, the buyers and sellers had also equalized in the market. Therefore, the Relative Strength Index remained at 50. The RSI looked likely to hold steady around this level, affirming the sideways movement of XTZ.
Conclusion
The XTZ market has been moving within a tight range of $3.5 and $3.8 with low momentum and a market at equilibrium. This would allow the price of the XTZ to stabilize in the mid-term and a price swing could make away in the long-term.
