The Tezos and Ontology price outlook for July 23

Ontology has hovered near a major turning point for days. The coin surged past several resistance levels to reach $0.795 after starting July around $0.54. Buyers twice couldn't push the token above $0.79. Thursday's 6% drop took the coin down to $0.69. If selling pressure mounts over the weekend, Ontology could fall to $0.65. The Stochastic RSI has moved into oversold territory, and the MACD shows a bearish divergence.

A three-day losing streak has sent Tezos down more than 4% over the past 48 hours. At writing, Tezos trades at $3.05, off 1.4% in the past 24 hours. Ranked 13th by market cap, Tezos had been among July's strongest altcoins before Thursday's dip knocked it 1.6% below its weekly peak. Technical patterns suggest Tezos may not hold onto recent gains. The RSI shows bearish divergence, and the MACD points toward a bearish crossover. Buyers still have the upper hand, but if the coin breaks down, it could fall to the 20-day and 50-day moving averages. A breakdown would turn the current support at $3.0 into a resistance level.

Thursday saw the S&P 500 and Dow Jones close in the red amid escalating US-China tensions and deteriorating COVID-19 conditions. The stock market selloff could dampen Bitcoin's prospects of approaching $10,000 by weekend. Traders hunting for alternatives have their eye on Ethereum and the DeFi sector. A Bitcoin rally would lift altcoins like Tezos and Ontology, which have fallen while the broader market recovered.