Weekly 38% Retracement In View For Tezos (XTZ/USD)

Cryptos are flatlining to open the week as most coins are trading sideways. Key negative movers have been Bitcoin BTC (-0.64%), Dogecoin (-2.26%), and Bitcoin Cash (-1.20%). On the positive side, Ethereum ETH (+1.79%) and Polkadot (+1.66%) are up modestly while Tezos (+7.08%) has rallied nicely over the past 24-hours.

One of the great things about active trading is that there is always an active market. Today it’s Tezos, which is showing strength. At its core, Tezos is a technology used to deploy a blockchain with a local governance model. This is made possible by Tezos’s proof-of-stake consensus algorithm, which is contrary to the proof-of-work algos used by Bitcoin and Ethereum. Although cryptos may still be in their infancy, the division between proof-of-work and proof-of-stake verifications is growing. 

Perhaps the key difference between Tezos and other cryptos is that it has a voting feature. Holders of XTZ are able to vote on the network’s future direction, potentially impacting the creation of hard forks and XTZ valuations. While Tezos is down the list of cryptos in terms of market cap, many traders view the coin as a potential powerhouse in the cryptosphere.

Weekly 38% Fibonacci Retracement In View For Tezos

Although CFD trading is off-limits for U.S.-based traders, it is a means of shorting cryptos. For Tezos, there may be a nice opportunity to sell in the near future.

Bottom Line: As you can see on the XTZ/USD chart, the weekly 38% Retracement ($4.70) and weekly SMA ($4.53) are within $0.25 of each other. This area is a good technical zone to short Tezos and may be a great trend-following opportunity.

For the remainder of the week, a sell from $4.45 isn’t a bad way to trade the XTZ/USD. With an initial stop loss at $5.55, this trade produces $1.10 (25%) on a 1:1 risk vs reward ratio.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

Related Articles

Trump-Themed Cryptos Tumble 20% After Swearing-In Ceremony

4 months ago

Save

Bitcoin Price Correction Shows One Key Thing about Bitcoin in 2025

5 months ago

Save

Tezos (XTZ) Gets Slight Boost From Esports Partnership But Sentiment Weighs

3 yrs ago

Save

Comments

Leave a Reply Cancel reply

You must be logged in to post a comment.