A Weekend Trade Idea For Tezos (XTZ/USD)

Cryptocurrencies are on the bull today, posting solid gains across the board. At press time, Bitcoin BTC (+7.10%), Ethereum ETH (+7.50%), and Ripple XRP (+11.77%) are up big. Altcoins Tron (+5.18%), Polkadot (+10.11%), and Tezos (+5.59%) are also having a nice session. With weekend trade only a few hours away, sentiment is positive following a rough Fed-dominated week.

All in all, it has been a quiet news day in the cryptosphere. After the FOMC Minutes and bold statements from Fed member Kashkari, it appears the pressure is off crypto. For now, that is. Subsequently, short-term action has been bullish and brought several key numbers into play:

Coin                                                    Key Number

Bitcoin                                                      $50,000

Ethereum                                                 $3,500

Ripple                                                        $1.25

Litecoin                                                     $200

For Tezos, prices are up 60% over the past 30 days. Given the stiff gain, two key levels of topside resistance are coming into view. If we see bids continue to hit XTZ, a premium selling opportunity will set up nicely.

Is Tezos (XTZ/USD) Ready To Challenge The Weekly Downtrend?

Since the highs of early-May, it has been a rough go for Tezos. Values have been cut in half as XTZ has yet to recover from mid-May’s selloff. Currently, a bearish bias remains warranted as topside resistance is coming into view.

Here are two long-term levels to be aware of for Tezos:

• Resistance(1): Bollinger MP, $4.08
• Resistance(2): 38% Retracement Of Macro 2021 Range, $4.51

Bottom Line: If we see Tezos continue its recent winning ways, a challenge of the $4.00 handle is likely. Until elected, I’ll have sell orders in the queue from $3.99. With an initial stop loss at $5.09, this trade produces $1.00 (25%) on a rejection of the $4.00 handle.

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.

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