Disclaimer: The results of the following analysis are the sole opinions of the author and should not be construed as investment advice
Since falling to a 5-month low of $ 2.1 on June 22, the Tezos market has struggled to regain levels shortly after the May 19th crypto sell-off. The recent spike to $ 3.1 was countered by selling pressure, which brought it down to $ 2.75 at press time. With little volatility in the market, Tezos could see sideways movement in the next few sessions with little chance of a breakout.
Tezos 4 hour chart
Source: XTZ / USD, TradingView
There wasn’t a lot of positive evidence from the Tezos chart. Its steady rise from $ 2.1 to $ 3.1 was its last major rally, but the 200 SMA (green), which has been declining for nearly two months, refused to move further. As selling pressures returned to the market, XTZ broke out of its upward channel south to find support on the defensive line at $ 2.58.
There were some attempts at another rally on July 8th, but the price couldn’t break the 50 SMA (yellow) and cap of $ 2.85.
argumentation
The Relative Strength Index rebounded from the oversold zone as the Tezos bulls launched a brief 6% rise back towards $ 2.85. The index hadn’t risen above 50-55, however, which meant the bulls had yet to take control. The downtrend in On Balance Volume indicated that selling pressure was still a driving force in the market, although a rise above the upper trendline could indicate some resurgence in the buy.
Finally, the Awesome Oscillator indicated that bullish momentum had increased over the past few sessions.
Given XTZ’s mixed indicators, there has been a lot of uncertainty in the market. With the 200-SMA, 50-SMA, and Visible Range’s POC of $ 2.9 all forming strong resistance channel, a northward push seemed unlikely. However, a close above the above levels would mark a comeback towards $ 3.
diploma
Although some upward momentum had entered the market, the Tezos bulls faced a difficult task in breaking above the strong resistance channel of $ 2.85-2.92. Its short-term move is expected to be sideways, but the 24-hour trading volumes should be watched closely. If volumes continue to rise, there is a possibility of a breakout to the upside – one that could push XTZ back towards the 3-digit US dollar mark.
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