Tezos (XTZ) continues to consolidate under the resistance level present on the higher timeframe.
- Between June 18 and July 12, XTZ’s price has produced two equal highs and two higher lows.
- Investors should brace for another leg down for XTZ’s price.
The price of Tezos (XTZ) continues to consolidate under the resistance level present in the higher timeframe. This has prevented any upside for around a month now. Furthermore, the recent recovery led to a failed attempt at breaking out. This may suggest that the sellers are still present.
On June 12, Tezos experienced a selloff that pushed its price below the $1.67 support level. Following this breakdown, XTZ lost 29% of its value before establishing a solid bottom of around $1.17 on June 18.
Several altcoins experienced a bearish move similar to XTZ up until June 18 but have climbed to date. As a result, XTZ’s price bounced by 41% to retest the $1.67 hurdle again. Between June 12 and July 18, XTZ’s price produced two equal highs and two higher lows.
As things stand, investors should brace for another leg down. Regardless, if the bearish momentum continues, the XTZ’s price is more likely to trigger a bearish breakout. If this happens, Tezos will produce a daily candle stick close below $1.33, which will confirm the downward move.
On the other hand, if XTZ’s price breaks out prematurely above the $1.67 barrier and can flip into a support level, the bearish thesis will be invalidated.
Daily chart for XTZ (Source: Trading View)
At the moment, XTZ is ranked number 35 in terms of the biggest crypto market caps and is up by a measly 0.10% margin. This takes its price up to $1.58 at the time of writing.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.