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Tezos’ price action over the past week has primarily favored sellers, with buyers being unable to catalyze any strong uptrend while also being unable to guard against today’s market-wide selloff.
The decline seen by the cryptocurrency earlier today led it to plunge to lows of $3.60. This marks a serious decline from its multi-day highs of $4.40.
This sharp decline has marked a bearish resolution to a consolidation phase that the crypto was previously caught within.
Where it trends next will likely be determined by whether or not Bitcoin can stabilize within the upper-$11,000 region, or if it will face further selling pressure that guides it lower.
A further decline in BTC’s price will likely create a headwind for the entire crypto market, which may force Tezos and other altcoins significantly lower.
One analyst is now watching for a move down towards $3.00 for XTZ, with this being a key USD support level that may stop it from seeing any further downside.
Tezos Sits Above Multiple Key Levels Against BTC
At the time of writing, Tezos is trading down marginally at its current price of $3.85. This is around where it has been trading after it rebounded from daily lows of $3.60 that were set at the bottom of the overnight selloff.
This recent downtrend came about after the cryptocurrency was rejected at highs of $4.40 just a couple of days ago. Before hitting these highs, it had been caught within a prolonged bout of sideways trading between $3.90 and $4.20.
Unless Bitcoin rallies higher and creates a tailwind that lifts altcoins higher as well, the crypto may soon plunge lower.
One analyst did note in a recent tweet that Tezos is now sitting on some interesting levels while looking towards its Bitcoin trading pair.
It may find enough support against BTC to slow its USD trading pair’s descent.
“Interesting, interesting. On some interesting levels here. USD value might come a bit lower, but my eyes are focused.”
Image Courtesy of Crypto Michael. Chart via TradingView.
XTZ May Slide as Low as $3.00 Against Its USD Trading Pair
While looking towards its USD trading pair, the same analyst offered a slightly different outlook, explaining that he believes it may soon drift as low as $3.00 before it can find any notable support.
That being said, before hitting this level it may first rally up towards the region between $4.20 and $4.30.
“That’s why you wait to buy the dips. Didn’t get fully loaded on this one, but it’s bouncing nicely. Given that I assume BTC will range for a bit, I think $4.20-4.30 isn’t odd to expect.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Bitcoin’s near-term trend will likely offer vital insights into that of altcoins like Tezos.
Featured image from Unsplash. Charts from TradingView.
