Today is November 26st, 2021, let’s take a look at the daily chart for Tezos, symbol $XTZ.
As the chart continues to play out bearish divergences and consolidate along with the broader cryptocurrency market, it’s important to understand other financial factors at play.
Today, the WHO announced that the new variant strain of the corona virus discovered in South Africa is of concern. This was widely reported on in the financial and other media.
Banking organizations released reports suggesting the Federal Reserve will tighten monetary policy on an accelerated timeline.
This news, paired with technical bearish divergence on the S&P 500 index, led to a sharp decline in the stock market. Because the stock market is at the highest leverage position in history, volatility will create liquidity needs and margin calls. In some cases, this money will come from other markets such as the cryptocurrency market.
Now, the daily candle for XTZ closed today on the support drawn on November 21st, 2021. The green box is the weekly support zone dating as far back as August 2021. A reclaim of the daily 200 ema will be a good sign for a reversal. A break below $4.25 will be very bearish and could lead to a drop below $4.
The more likely situation is sideways accumulation between the $4.68 support and $5.58 resistance.
Disclaimer – All information presented here is from my own thoughts and should be considered speculative entertainment only. This is not financial advice, and real money should not be used or risked based on the information presented here. Consult a financial advisor before entering any new financial position at your own risk.