XTZ Technical Analysis: Downtrend Retests $3; Will Bears Smash The Support Level?

The XTZ coin price action shows a high momentum downtrend that tests the $3 mark with a 30% downfall in a week. Will the downtrend bring more discounts? The retest failure of the rounding bottom breakout on February 16th marked the start of the present downfall. The XTZ coin price failed to sustain above the $4 mark resulting in a 30% downfall last week. Hence, the increased trend momentum reflects the possibility of a $3 breakout. Key technical points: XTZ coin price tests the $3 mark. The price chart shows the bearish alignment of the daily EMAs. The 24-hour trading volume in the Tezos token is $246 Million, indicating a 20% rise. Past Performance of XTZ The XTZ token price created a rounding bottom pattern with the reversal from $3 on January 28th. However, the retest possibility mentioned in our previous article failed to propel the prices higher. Hence, initiating a downfall below the $4 mark accounting for a 30% fall. Source-Tradingview XTZ Technical Analysis The XTZ coin price shows the possibility of a double bottom reversal as it forms a potential base near the $3 mark. Moreover, the lower price rejection resulting in the 15% overnight growth increases the reversal possibility. The crucial 50, 100, and 200-day EMAs keep a falling trend in a bearish alignment in the daily chart as the 100-day EMA provides an emotional barrier. Hence, any bullish reversal will need to overcome the selling pressure at multiple daily EMAs...