Tezos has worked hard to establish itself in the DeFi market. And especially in the NFT market.
Recently, in line with the same goal, the Israeli branch of the crypto chain introduced a unique approach to storing and authenticating NFT collections by sending them from an original wallet.
But unfortunately, even these developments have not had any impact on the token. In fact, at the time of writing, XTZ was struggling to rise above a two-month resistance.
Tezos has a new battle
XTZ’s recovery has been slow but consistent, trading at $1.83. Usually, investors expect non-volatile price movements from the token without much resistance.
But in the case of XTZ, resistance has kept the rally from moving below $2 for about two weeks.
While it was getting closer and closer to breaking the resistance, the 4.85% drop in recent days has caused the altcoin to lose the opportunity once again.
And the chances of it being successful in the coming days seem rather bleak.
Immediately after the red candle formed 48 hours ago, the MACD, which has been in a consistent bullish state for nearly three weeks, performed 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 XTZ will stick to this trend unless broader bullish signals appear in the market.
Bullish signals have yet to be noticed in the market – most altcoins have closed in the red for the past three days.
This has resulted in a loss of $30 billion in the market.
In addition, 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 downward trendline.
With these developments, Tezos is also able to attract new investors in the chain.
Not to mention, the risk-adjusted returns on the asset (Sharpe Ratio) are currently excellent.
But the lack of volatility will become a problem in the future.
Usually high volatility is not good for a cryptocurrency, but to get a rally going, some volatility is needed.
Otherwise, XTZ will be refused to go beyond $2.
This post Are you going long on Tezos [XTZ] in August? Read this first
was published first on https://ambcrypto.com/are-you-going-long-on-tezos-xtz-this-week-read-this-first/