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Analysis: The 41% Uptrend in XTZ/USD Price in October Halts As Bears Take Control

After a strong month in October, Tezos (XTZ) is finally taking a break as bulls ease off the pedal. Since testing resistance at $1.31 on 7th Nov, the XTZ/USD market has gone sluggish as bears force the price towards support levels at 81 cents. The free ride to the top is only partially halted as bulls look set to regain strength to take over the market.

Source: Coinmarketcap

Tezos (XTZ/USD) bears take control

A peep at the daily candle charts shows that a gloomy period for the XTZ/USD pair is on the horizon as the price tested the minor resistance level at $1.1542. Currently at $1.1515, a close below the minor resistance signals a start of a bearish reversal towards the $1.00, $0.96 and $0.81 support levels in the coming weeks.

The close of the current daily candle will signal the prospective direction of XTZ/USD as bulls and bears battle. However, the volumes remain low despite the bears having control of the market, which shows a weak trend and bulls may be on hand to retake control.

Source: TradingView

The MACD line is narrowing towards the signal with a death cross imminent if bears gain strength in the market. The spike is volume during the short bullish run that saw XTZ/USD grow by 41% in a month, seems to have exhausted the bulls with the bears trying to gain absolute control in the market.

Tezos long term bullish trend price signals $2.00 USD

As suggested before, you should not bet against the price of XTZ in the long term as technical indicators shows a possible reversal in the market. A bounce off the support level at $1.1542 will signal possible bullish trend towards the bearish triangular pattern resistance level.

Source: TradingView

The long term prospects look positive for the token with the yearly high at $1.96 USD on the cards if the price closes above resistance level on its bearish flag (downward triangular pattern). This means the bearish trend that has sustained since May this year will officially be broken.

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