Tezos: Assessing if XTZ holders will witness another crash in July

ambcrypto.com:

The Decentralized Finance chain has been gradually recovering from June’s losses. But in the process, an interesting pattern has been revealed, which might hint at XTZ’s course of action over the next couple of days.

The MACD indicator (MACD, blue and signal line, red) registered a nine-day EMA. Both, the blue and the red lines entered a bullish crossover earlier this week after XTZ began recovering the dip it observed this month. In doing so, it highlighted a repeated rise and fall pattern, keeping the altcoin constrained within the downtrend for almost nine months now.

Since the beginning of this year, the bullish crossovers that took place only lasted for a period of 15 to 20 days. In this time period, XTZ successfully rallied only to be stopped short just as it tested the downtrend line either as resistance or support.

Tezos price action | Source: TradingView – AMBCrypto

Active since October 2021, the downtrend has been tested multiple times since. And, the altcoin has failed to sustain its rise every single time. XTZ is about to test new levels once again, and it might be subjected to a similar fate this time as well.

The DeFi token is potentially looking at a 20.81% rally which could take the price of the token from $1.6 at press time to $1.94. Post which, XTZ might linger in the zone for a few more days or could end up falling right after.

However, looking at the past performance of the altcoin, it is safe to state that the MACD will transition into a bearish crossover on or before 10 July. As for whether or not it can sustain the rally and close above the downtrend, the outcome in favor of the former is highly unlikely.

Firstly, because the present state of the asset is in no way good enough to draw the support of new