Crypto Technicals: Tezos (XTZ) consolidates break above cloud, 'Bearish Butterfly' pattern could plummet prices

XTZ/USD chart - Trading View

Exchange - Kraken

Support: 1.3413 (23.6% Fib); Resistance: 1.5416 (Upper BB)

Technical Analysis: Bias neutral

Tezos (XTZ) is extending consolidation after price action broke above daily cloud (Aug 1st trade).

Major trend in the pair remains bullish as long as price action holds above 200-DMA support (0.9570).

There is a growing popularity of the Tezos blockchain network among banks that are choosing it for increased security token offerings, notes Yoni Assia, co-founder and CEO at eToro.

eToro has added support for the Tezos token (XTZ), making XTZ the 15th cryptoasset available on eToro’s US platform.

The pair is popping signs of technical weakness. Upside was capped at 61.8% Fib retracement at 1.5125.

Successive spinning tops and Doji formations at highs shows indecision among traders.

Further, a 'Bearish Butterfly' pattern confirmed on the daily charts adds to the bearish bias.

Oscillators are at overbought levels and on verge of rollover into neutral territory. Price action edges away from upper Bollinger Band.

'Bearish Butterfly' pattern could plummet prices. Scope for dip till 38.2% Fib at 1.2432.