A Weekend Trading Plan For Tezos (XTZ/USD)
It has been a tight day for cryptos as the leading coins have traded sideways. Over the past 24-hours, Bitcoin BTC (-1.96%), Ethereum ETH (+0.51%), Ripple XRP (+2.70%), and Litecoin LTC (-1.52%) have hovered near scratch. For Tezos (-0.11%) traders have made an about-face as participation has been modest.
Although 2021 has been an epic year for crypto values, the road hasn’t been smooth. Since last spring’s pricing runup, most coins are off of yearly highs more than 65%. This is certainly true for Tezos (XTZ/USD), which is down upwards of $5.50 (66%) from May’s top. With Q3 2021 in full swing, one has to wonder if or when the cryptocurrency asset class will return to its former glory.
All in all, the Friday crypto news cycle has been relatively quiet. Aside from the U.S. Senate moving forward with the $550 billion infrastructure plan that includes a $30 billion crypto tax hike, not much is moving the markets. For now, fears of COVID-19 variant Delta are once again the financial lead story.
Let’s take a look at the technical picture for Tezos and a potentially strong buying opportunity.
Converging Indicators Form Support For Tezos (XTZ/USD)
Any time two or more technical indicators converge on a single price point, a strong buying or selling opportunity may be in the offing. That’s what we now have for Tezos. Both the daily 38% Fibonacci Retracement and SMA have met at $2.72.
Bottom Line: As we head into the weekend, I’ll be looking to buy Tezos from $2.75. With an initial stop loss order at $2.44, this trade produces $0.25 (9.0%) on a sub-1:1 risk vs reward ratio.
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