Technical analysis by CryptoNuclear about Symbol XTZ: Buy recommendation (1/6/2026)

XTZ/USDT on the Daily (1D) timeframe remains in a medium-term downtrend, clearly structured within a Descending Channel. Price action continues to respect this bearish structure, while the recent bounce from the lower boundary indicates a short-term relief rally rather than a confirmed trend reversal. Volume remains relatively stable without significant expansion, suggesting that bullish momentum is still limited and primarily technical. --- Pattern Explanation Descending Channel (Bearish Continuation Pattern) Formed by consistent lower highs and lower lows. Price bouncing from the lower channel often triggers temporary recoveries. As long as price remains inside the channel, the dominant trend stays bearish. A valid trend reversal requires a strong daily close above the upper channel, ideally supported by increased volume. --- Key Levels Resistance Zones: 0.6160 → Minor resistance / mid-channel 0.7050 → Structural resistance 0.7960 → Previous breakdown & supply area 0.9060 – 1.0700 → Major resistance zone Support Zones: 0.5400 – 0.5200 → Short-term support 0.4600 → Key support level 0.4206 → Major low / last support --- Bullish Scenario Price breaks and closes above the upper boundary of the descending channel. Bullish continuation confirmed if 0.6160 flips into support. Upside targets: 0.7050 0.7960 0.9060 This scenario signals a potential early trend reversal. --- Bearish Scenario Price gets rejected at the upper channel or fails to hold above 0.6160. Bearish continuation patterns may appear. Downside targets: 0.5400 0.4600 0.4206 A breakdown below 0.4206 could open the door for a deeper bearish extension. --- Conclusion XTZ/USDT is currently at a critical decision zone. The recent upside move is still considered a pullback within a broader downtrend. The primary bias remains bearish unless price can achieve a confirmed breakout above the descending channel. --- #XTZ #XTZUSDT #Tezos #CryptoAnalysis #TechnicalAnalysis #DescendingChannel #BearishTrend #TrendReversal #Altcoin