XTZ/USDT Stumbles After Failed Breakout, Bearish Patterns Emerge

Summary
• Price formed bearish engulfing patterns near 0.3705 and tested support at 0.3645.
• Momentum weakened in RSI and MACD with potential short-term oversold conditions below 36.8.
• Volatility expanded as price moved 1.6% between daily high and low, reaching 0.3733 before retracement.

At 12:00 ET on 2026-02-24, Tezos/Tether (XTZUSDT) opened at 0.3688, reached a high of 0.3733, a low of 0.3642, and closed at 0.3684. Total volume over the 24-hour window was 1,487,238.1, with a notional turnover of 526,845.66.

Structure and Key Levels

Price action showed a distinct bearish bias following a bullish morning breakout above 0.3705, which quickly failed, forming a bearish engulfing pattern. A strong support level emerged at 0.3645, where the price consolidated briefly, and a second bearish engulfing pattern was observed at 0.3690. On the Fibonacci retracement of the key 0.3642–0.3733 swing, the 0.367–0.368 zone represents 50% retracement and appears to be a pivot point for near-term direction.

Momentum and Volatility

MACD lines showed bearish divergence as price recovered but momentum failed to confirm, while RSI dipped into oversold territory at 34.2 after the 0.3642 low. Volatility expanded significantly, with Bollinger Bands widening as the price range increased from ~0.368 to ~0.373. The price closed just above the 20-period moving average on the 5-minute chart, but the 50-period line is bearish and may act as resistance.

Volume and Turnover Divergence

Volume spiked notably at the key bearish breakdown below 0.3700, particularly in the 03:00–04:30 ET timeframe, with a peak of 73,172.3 volume at 05:00 ET. Turnover also surged during the afternoon ET sell-off, confirming bearish pressure. However, recent volume has declined, and price has consolidated around 0.3685, suggesting a potential pause in momentum.

Looking ahead, Tezos/Tether may test the 0.366–0.368 consolidation zone for direction. A break below 0.3645 could trigger deeper correction toward 0.3620, while a retest of 0.3700–0.3705 with higher volume may indicate short-term buying interest. Investors should remain cautious of thin liquidity around key moving averages and watch for divergence in momentum indicators.