XTZ Rebounds from Yearly Support; is it a good buy?

The June second week crash plummeted the XTZ price to a new 2022 low of $1.2. However, previously this support bolstered the Jan-and-April bull run, validating it as a strong demand zone. Thus, the coin price rebounded from this support last weekend, encouraging buyers to breach the $1.62.

Key points:

• The XTZ price faces high supply pressure at a $1.62 resistance.
• The MACD indicator shows a bullish divergence
• The intraday trading volume in the Tezos coin is $65.4 Million, indicating a 72.9% hike.

Source- Tradingview

A constant downfall for the past eight months plunged the XTZ/USDT pair to Jan-Mar 2020 bottom support of $1.2, registering an 86.7% loss. However, on June 19th, the altcoin rebounded immediately with the tweezer bottom candles.

The bullish reversal drove the XTZ price 33% higher as it hit a significant resistance of $1.62. However, over the past four days, the coin chart shows higher price rejection at the mentioned level, indicating the sellers are defending this level.

Furthermore, despite today’s 68% rise in volume, the XTZ price struggles to surpass the $1.62 resistance, suggesting a reversal possibility. If the seller’s pressure persists, the altcoin could slump back to $1.2.

On a contrary note, a possible bullish breakout from the $1.62 resistance could bolster the buying pressure to drive the coin price 44% higher to the $2.38 mark. A breakout or reversal from the resistance zone could validate whether the buyers are ready for a genuine recovery.

Technical indicator

Despite a lower low formation in price action, the MACD indicator slopes climb higher, indicating growth in underlying bullishness. This divergence encourages XTZ buyers to breach the $1.62 resistance.

Since October 2020, the midline and upper band on the Bollinger band indicator have acted as strict dynamic resistance for coin traders. Moreover, the midline is currently assisting sellers in stalling the potential breakout from overhead resistance.

• Resistance level- $1.6 and $1.8
• Support levels- $1.2 and $1