Are you going long on Tezos [XTZ] in August? Read this first
Tezos has been working hard to establish itself in the DeFi market. And, particularly in the NFT market.
Recently, in line with the same goal, the crypto chain’s Israel arm introduced a unique approach to minting and authenticating NFT collections by sending them from an origin wallet.
But, unfortunately, even these developments have had no impact on the token whatsoever. In fact, XTZ, at press time, was struggling to rise above a 2-month-long resistance.
Tezos has a new struggle
Trading at $1.83, XTZ’s recovery has been slow but consistent. Usually, investors expect non-volatile price movements from the token without much resistance.
But in the case of XTZ, the resistance has kept the rally from advancing beyond the $2 mark for about two weeks now.
Although it was inching closer to breaching the resistance, the 4.85% drop over the last few days has resulted in the altcoin losing the opportunity once again.
And, the chances of it being successful over the next few days seem rather bleak.
Right after the red candle formed 48 hours ago, the MACD which was in a consistent bullish state for almost three weeks, executed a bearish crossover.
The signal line (red) crossing above the indicator line (blue) also resulted in the appearance of red bars on the price indicator.
This, basically, means that unless broader market bullish cues make an appearance, XTZ will stick to this trend.
Bullish cues are yet to be noted in the market- most of the altcoins are closing in red over the last three days.
This has resulted in a loss of $30 billion from the market.
Besides, XTZ also has the support of the 50-day Simple Moving Average (SMA) (blue line) and the 100-day SMA (red line) which it gained after closing above the 10-month long downtrend line.
Tezos is also capable of luring new investors onto the chain with these developments.
Not to forget, the risk-adjusted returns on the asset (Sharpe Ratio) are excellent at the moment.
But the lack of volatility will be an issue going forward.
Usually, high volatility is not good for a cryptocurrency but in order to trigger a rally, some volatility is needed.
Otherwise, XTZ will be denied to move beyond $2.