- Tezos Price is hovering above a support level, indicating signs of a minor bounce despite exhaustion.
- Investors can expect a 6% bounce to sweep the equal highs formed at $1.95 before reversing the direction for a 15% crash.
- A daily candlestick close above $1.95 that flips this level into a support floor will invalidate the bearish thesis.
Tezos Price is hovering above a stable support level after facing an intense rejection. While this foothold is likely to provide harbor, it will not be for long. Investors must prepare for a long squeeze as bears make an elaborate move.
Tezos Price ready to move
Tezos Price created a range, extending from $1.36 to $2.28 in early May 2022. After a sweep of the range low in mid-June, XTZ has rallied 45% to set up not one but two swing highs at $1.95. The liquidity resting above these equal highs is the next objective of the market makers.
As Tezos Price hovers above the range’s midpoint at $1.82, investors can expect a swift move that sweeps the buy-stop liquidity resting above $1.95. While this move could entice investors by producing a higher high, they should be cautious.
This run-up above the double top at $1.95 could be bears’ plan for a fakeout, especially considering the equal lows formed at $1.65. Therefore, a move to $1.95 could soon be met with a 15% downswing that sweeps the sell-stop liquidity.
In some cases, Tezos Price could extend this down move to sweep the July 26 swing low at $1.47.
XTZ/USDT 1-day chart
On the other hand, if Tezos Price sweeps the $1.95 level and flips it into a support floor with no discernable signs of a retracement, investors should exercise caution. Such a development could invalidate the bearish outlook and indicate that the bulls are back and could propel XTZ to retest the range high at $2.28.