Jul 12, 2022 04:30AM ET
By: AnalysisWatch
Tezos continues to consolidate below the resistance level in the higher time frame.
Between June 18 and July 12, the price of XTZ has reached two flat highs and two higher lows.
Investors should prepare for another decline in the XTZ price.
The price of Tezos continues to consolidate below the resistance level present in the higher time frame.
This has prevented any upside for about a month now. Furthermore, the recent recovery resulted in a failed breakout attempt. This may suggest that the sellers are still present.
On June 12, Tezos experienced a sell-off that pushed its price below the $1.67 support level. After that breakout, XTZ lost 29% of its value before establishing a solid low of around USD 1.17 on June 18.
Several altcoins experienced bearish moves similar to XTZ until June 18, but have rallied to date. As a result, XTZ's price rebounded 41% to retest the USD 1.67 hurdle. Between June 12 and July 18, XTZ's price produced two flat highs and two higher lows.
As things stand now, investors should brace for another decline. Nevertheless, if the bearish momentum continues, the XTZ price is more likely to trigger a bearish breakout.
If that happens, Tezos will produce a daily candle with a close below $1.33, which will confirm the downtrend.
The bearish thesis will be invalidated if the XTZ price breaks prematurely above the $1.67 barrier and reverses into the support level.
XTZ is currently ranked 35th in terms of the largest cryptocurrency market capitalizations and is up a paltry 0.10%. Thus, its price rose to $1.58 at the time of writing.