XTZ–USD daily chart.

XTZ–USD daily chart.

Gate Trade XTZ Thursday, April 2, 2020 705 0

Tezos (XTZ) has been trading between $1.4453 and $1.955 for the past few days. Though the bulls have managed to defend the support at $1.4453, they have not been able to push the price above the 20-day EMA, which suggests a lack of buying at higher levels.

If the bulls again fail to scale the price above the 20-day EMA, a retest of $1.4453 is likely. If this support breaks, it will complete a small descending triangle pattern, which can drag the price toward the recent lows.

Conversely, if the XTZ/USD pair rises above the 20-day EMA, a move to $1.955 is possible. The pair will pick up momentum on a break above the downtrend line. 

Therefore, the traders can wait for the price to close (UTC time) above the downtrend line before initiating long positions. The stops can be kept at $1.40 and the first target objective is the 50-day SMA at $2.43 — and if this is crossed, the next level to watch out for is $3.20.