Tezos Price Analysis – 26th February 2023

This Tezos Price Analysis – 26th February 2023, is hosted by BNC’s Josh Olszewicz.

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Roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pivot Points, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.

On the daily chart for XTZ/USD, the 50-day and 200-day Exponential Moving Average (EMA) bullishly crossed in January, leading price to new all-time highs. The Volume Profile of the Visible Range shows support at US$2.75 and resistance at US$3.70 and US$4.65. Yearly pivots also show resistance at US$3.70 and US$6.00. Additionally, there are no bullish or bearish divergences on volume or RSI at this time.

Bitfinex open interest is currently 99% long, with long interest decreasing over the past month and short interest remaining flat over the same time period (top panel, chart below). A significant price movement downwards will result in an exaggerated move as the long positions begin to unwind. This is known as a “long squeeze”.

Turning to the Ichimoku Cloud, four metrics are used to determine if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

Daily Cloud metrics, with doubled settings (20/60/120/30), for more accurate signals, are bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above the Cloud and above the current spot price. The trend will remain bullish so long as the spot price remains below the Cloud, currently at US$2.60.

Both the XTZ/BTC and XTZ/ETH pairs show strong bearish trend metrics with prices at or near all-time lows. A remote possibility for both pairs is a mean reversion to the respective 200-day moving averages, but even more likely, consolidation at current lows or bearish continuation.

Read Price Analysis for all crypto coins here
https://bravenewcoin.com/insights/price-analysis

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