Tezos price may crash 45% on this chart pattern

Written by: Michael Harris
June 13, 2020
  • Tezos to use blockchain AML & transaction monitoring solutions made by Coinfirm
  • XTZ/USD trading over 7% lower this week
  • A potential double top pattern is developing in Tezos, which may ultimately take the price action 45% lower

Tezos price has lost over 7% this week as the buyers have failed to force a daily close above the $3.00 mark. As a result, the price action is developing a double top chart pattern, which is a bearish formation that may ultimately push the price action below the $1.50 handle. 

Fundamental analysis: Tezos to integrate tech for anti-money laundering compliance

Tezos protocol and its native token, XTZ, have incorporated blockchain AML & transaction monitoring solutions made by Coinfirm, the blockchain analytics and Anti-Money Laundering (AML) said.

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“Tezos has set itself in a leadership role by providing their protocol and related users and businesses the long term capability to operate and thrive globally in regulated markets. This will help push Tezos’ growth and adoption and we look forward to working with them further”, Coinfirm’s CEO and Co Founder Pawel Kuskowski noted

The AML protocols are now required for projects and platforms that are looking to operate in regulated markets globally. Coinfirm said that “Coinfirm AML Platform will be applying its 200+ proprietary algorithms and 300 risk scenarios to analyze risk on the protocol”.

“Coinfirm’s industry-leading AML compliance product provides a must-have tool for banks and other regulated financial players that store or issue value on the Tezos blockchain,” said Roman Schnider, CFO and Head of Operations at the Tezos Foundation.

It is believed that 1,500 different coins, tokens, and protocols are now using Coinfirm AML Platform. 

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Technical analysis: Potential double top pattern

Tezos (XTZ/USD) has lost over 7% in value so far this week after the coin followed Bitcoin and the rest of the crypto market lower on Thursday. XTZ/USD failed to clear the horizontal resistance around $3.05 in the first week of June, rotating lower to trade around the $2.70 handle. 

Tezos daily chart (TradingView)

As a result, the price action has been creating a potential double top pattern, which is a bearish chart formation. This pattern comes as a result of the buyers’ inability to extend the bullish series of the higher highs. The second peak is not registered as a higher high, but rather as an equal high. This weakness is then used by the sellers to push the price action lower and erasing previous gains. 

The double top pattern would be activated by a move below the $2.25 mark, which is a neckline in this case. The break of this area would facilitate more selling in Tezos price action, and paving the way for the pattern to be completed just below the $1.50 mark.

Summary

Tezos price has been trading lower this week after the entire crypto market took a plunge on Thursday. The price action is now creating a potential double top formation, which is a bearish chart pattern that may take XTZ/USD to below $1.50.