Tezos (XTZ) is trading near a critical support area that could determine short-term direction for both bulls and bears
XTZ climbed to a high of $2.27 on November 7 as optimism swept crypto and global markets. However, when major U.S. networks projected Joe Biden as the winner of the U.S. election, Bitcoin slid to around $14,567, triggering selling across the market and knocking XTZ/USD down to $1.98.
Bitcoin has since recovered above $15,000, and XTZ/USD may follow if the bounce is sustained. If the recovery proves shallow, however, bears could press the token toward support near $1.80.
XTZ/USD price analysis
Tezos is trading around $2.07 against the U.S. dollar, down roughly 2% over the past 24 hours.
On the 4-hour chart, selling pressure appears to dominate: the pair has printed four consecutive red candles, suggesting momentum is tilted to the downside for now.
Tezos sits below the 200-period simple moving average (200-SMA) on the 4-hour chart, which increases the risk of further downside if sellers intensify. Still, the 50-SMA and 100-SMA are currently positioned to provide support and could help bulls absorb additional selling pressure.
Should price drop beneath those moving averages, the technical outlook points toward a test of support around $1.80. That zone aligns with the lower band of the daily Bollinger Bands squeeze and represents a meaningful area for buyers to defend.
On the daily timeframe, XTZ trades below the 50-SMA at about $2.11. If the price can hold above the middle Bollinger Band, consolidation above the $2.00 level becomes plausible, giving bulls a chance to rebuild momentum.
An influx of buy orders at current levels could enable bulls to reclaim the daily 50-SMA and challenge higher resistance. The upper Bollinger Band would be the next area to watch if buyers turn near-term resistance into support.
A decisive breakout to the upper edge of the daily Bollinger squeeze would open the path for bulls to test the 100-SMA (red) and 200-SMA (yellow) on the daily chart, located around $2.65 and $2.69 respectively.
If buyers can flip those moving averages into reliable support, XTZ/USD could target a break above its multi-month resistance near $3.00. In the short term, traders should monitor the 50-SMA and 100-SMA on the 4-hour chart as the key levels that will likely dictate the next directional move.