- Tezos price action differed from most of the altcoins as the token did not witness a drawdown in the last few days.
- MACD and RSI indicate the potential of a recovery that would push XTZ back up to $0.883.
- Falling through the support of $0.711 would invalidate the bullish thesis, bringing the altcoin close to a four-year low of $0.598.
Tezos price experienced a decline similar to most of the cryptocurrencies at the beginning of the month. However, while many altcoins are still painting red on the charts this week, XTZ steadied itself. The digital asset seems to be on the verge of initiating a recovery, provided it can maintain its presence above this key support level.
Tezos price could light a green path
Tezos price trading at $0.714 has kept itself restricted to a sideways movement over the last couple of days, sitting just above the support level at $0.711. XTZ has retested this support level for the second time this year after bouncing off of it back in March, after which the altcoin noted a recovery.
Although a similar outcome may not be the case this time around, the altcoin is certainly set up for a recovery. The Relative Strength Index (RSI) is sitting in the oversold zone below the 30.0 mark. The altcoin has dipped into this zone only for the second time this year, with the last time being at the beginning of 2023, following which XTZ noted a rise. As is, the oversold zone is synonymous with recovery.
Similarly, the Moving Average Convergence Divergence (MACD) indicator is still observing a bearish crossover. However, the histogram is exhibiting receding red bars, which is an indication of declining bearishness. Usually, this signals that the asset is preparing for a trend reversal that would be confirmed once the red bars turn green, flipping above the neutral line.
Tezos RSI and MACD
Thus if XTZ manages to bounce back, it would be looking at $0.883 as the next target, which also coincides with the 50-day Exponential Moving Average (EMA). Flipping this level into a support floor would also enable the altcoin to climb back up to $1.000, which is a critical psychological level.
XTZ/USD 1-day chart
On the other hand, if Tezos price falls through the support level of $0.711, the altcoin would invalidate the bullish thesis. This would leave XTZ vulnerable to a decline to $0.594, falling to mark a four-year low for the altcoin.
