After weeks of waiting and ranging, the cryptocurrency XTZ gives a first positive short-term signal. However, steps remain to be validated in the medium term. To analyse.
XTZ – Weekly chart: The Tenkan as the worst enemy
Since December 2021, XTZ is blocked by the weekly Tenkan. And right now this Tenkan continues to drive prices down. Although these have found support on the former high of 2019, a compression around this zone is observable. Shaped descending triangleenter here Tenkan and medium term support. However, some signs remain positive.
First the indicator MACD keep talkinggo upwhich shows that the selling force decreases on the support for $1.39. The indicator EMD confirms this drop in strength for the downtrend. With a ADX who diminishes and loses strength.
In order to give a real medium-term reversal signal, it will be necessary to break the Tenkan and the descending trendline, at $1.53. It will only be then that XTZ will send a real positive message to the market.
XTZ – Daily chart: Jump in the short term
After days of risk, with prices bordering on break medium term support, XTZ was able to bounce back and give a first bullish alert signal.
With in particular a breakout of the daily Kijun. This movement allowed prices to test the bottom of the cloud and the descending trendline. It is good to note that the Lagging Span remains blocked by prices, this one cannot confirm reversal signal as long as it doesn’t get out of that area. Either an exit above the $1.47 area.
Also, the indicator EMD shows a real loss of downtrend strength, with a diving ADX. Also the +DI line goes above the -DI line, which gives a first positive signal in this complex situation. Specifically, as long as prices do not break the $1.52 zoneit will be expected to strong resistance from sellers. These won’t let go as long as major resistances do not break.
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