Can Tezos (XTZ) Revisit The $3.00 Level?
In the case of Tezos, no news is good news. Since the market meltdown earlier in the week, prices have been on a steady climb.
Over the past seven days, one of the most active cryptocurrencies has been Tezos. On Coinbase, the XTZ/USD has traded between $3.43 and $2.12 ― a range of $1.31. However, things are improving as the coin is up 6% in the past 24 hours after being down more than 15% on the week. To say the very least, Tezos, like most other cryptos, has been on an extreme seven-day roller coaster.
For a change, the news on the cryptocurrency front is relatively quiet today. The buzz from China and South Africa’s early week moves has died down. Subsequently, a relative calm has returned to the marketplace. On a positive regulatory front, SEC Chairman Gary Gensler made a few comments on the bureau’s priorities; absent was any talk of cryptocurrencies. In statements from Wednesday, Gensler outlined two issues on the SEC’s front burner:
- On zero-commission brokers: “It’s not free.” Gensler is referring to brokers making money on routing customer orders to market makers and profiting from the bid/ask spread. Apparently, Gensler and the SEC believe these costs are hidden from customers and create conflicts of interest.
- On SPACS: “These are very expensive, dilutive products.” Gensler appears interested in more regulations toward special purpose acquisition companies and how they take private businesses public.
In the case of Tezos, no news is good news. Since the market meltdown earlier in the week, prices have been on a steady climb.
Tezos Back Within Striking Distance Of $3.00
The 4-hour chart below gives us a good look at the current rally in the XTZ/USD. Prices are back above $2.80 and very close to a key resistance level.
Here is one level to watch for the near future:
- Resistance(1): 78% Current Wave Retracement, 2.8830
Bottom Line: At this point, it looks like Tezos is getting ready to test the $3.00 handle. Until elected, I’ll have sell orders in the queue from $2.8700. With an initial stop loss at $3.1200, this trade produces 8.7% ($0.25) on a short-term rejection of the $3.00 area.
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