The crypto market recorded heavy losses on Saturday and Sunday, with the total market cap falling below the $1 trillion mark. This was after Jerome Powell, chair of the Federal Reserve (Fed) signaled an interest rate hike in the coming months. A more technical observation finds an impending bloodbath with Tezos (XTZ) price set to fall back heavily.
Tezos price attempted to break the 55-day Simple Moving Average of nearly $1.7 on August 26. However, the price action is facing a huge rejection. Triggered by Powell’s speech, a counter-cyclical move is observed to be more than likely. The Tezos price is said to have changed hands with the uptrend hike experienced since June coming to a halt. At a current price of $1.54, traders seeking to join the bearish trend should wait for a retest and rejection signal of the trendline before making any move.
Based on the technical observation, analysts predict a 25% decline with the bearish target at $1.20. However, any invalidation of the downtrend scenario could result in a closing candle above $2.03. If the buyers dominate sellers in the market to send the price to this target, the Tezos price could surge to $2.30 in the short-term. This is a 40% surge from its current price. This is when investors find relief nearby and see their hopes confirmed when the Feds ceases its harsh statement for the rest of 2022. When this happens, the dollar may weaken, stock prices may rise immediately, bonds may see a rally, and crypto could see an exponential surge.
In another scenario, when traders and investors paint a negative picture of the Fed’s measures to curb inflation, the Tezos price could face an easy deflation and fall back below the 55-day SMA.
Analysts predict that two big tailwinds caused by the surge of equities and the weakening of the dollar result in the presence of a multiplier in cryptos. These reasons could push the Tezos price to $2.0.
An in-depth analysis of the price trajectory also projects a positive outlook for the Tezos price. In September, another analyst predicted the price could go as high as $2.4 and as low as $1.67. In November, the Tezos price is expected to hit a maximum price of $2.69 and a minimum price of $1.80. In December, the price has been predicted to hit a maximum of $2.77 and a minimum of $1.84.
Tezos Price History
Tezos has never been stagnant since his launch. The price was $2.94 during the launch but surged to $4.3 on August 13, 2020. On December 7, 2020, the price experienced its all-time low before taking a rebound. The price has been very volatile in its history, so it is important to make informed and timely decisions based on the current price. As a takeaway, investors must consider the price action, market capitalization, moving averages, and other factors to make Investment decisions.