- The XTZ/USD is trading with a solid bearish trend at $4.55, losing over 10.20% so far.
- The US gross domestic product (GDP) expanded at an annual rate of 6.6% in the second quarter of 2021.
- Forex trading participants may look for a buy trade above the $4.45 level to the target of $4.85 and $5.20.
The XTZ/USD is trading with a solid bearish trend at $4.55, losing over 10.20% so far. The day before, the XTZ/USD closed at $5.07760 after placing a high of $5.41010 and a low of $3.96270. XTZ/USD surged on Wednesday to its highest in 15-weeks amid recent positive developments surrounding the Tezos network. If you are wondering what to expect and where to buy XTZ, let’s find out below…
Crypto Finance Group, InCore bank, and Inacta Chooses Tezos (XTZ)
Previously, the XTZ/USD surged and reached its almost 3-month highest level near $5.5 after the Crypto Finance Group, InCore bank, and Inacta chose Tezos. They are looking to provide innovative, compliant, on-chain digital financial products through a new token standard for asset tokenization.
Both InCore Bank and Inacta created a new Tezos token standard based on the Tezos FA2 standard for asset tokenization. Furthermore, the InCore Bank also announced the launch of institutional-grade storage, grading, and staking services for XTZ, the native digital asset for the Tezos blockchain.
Meanwhile, Inacta developed the DAR-1 token that Crypto Finance launched. The DAR-1 token is a standard on the Tezos blockchain that supports smart contracts. This could enable smart contracts on the network to fully power the financial markets, from anti-money regulations to asset governance.
Tezos network for asset tokenization
The main reason behind the selection of the Tezos network for asset tokenization was its on-chain governance. This enables the upgrades to the network without slitting or disrupting the network.
Indeed, it is highly attractive to financial service providers around the world. This news has been helping XTZ/USD for the past few days and lifted its prices to a multi-week high on Wednesday near $5.5.
A Stronger US Dollar Drags XTZ/USD Lower
The previous surge in XTZ/USD could also be attributed to the declining price of the US dollar, which was low at 92.82 yesterday. Hence, investors were cautious about placing big bets ahead of the Jackson Hole symposium. Thus, the greenback remained depressed and kept on pushing XTZ/USD higher for the day as both share a negative correlation.
During the US open session, the Bureau of Economic Analysis released the Prelim GDP q/q for the US. According to the Bureau of Economic Analysis’s “second” estimate, real gross domestic product (GDP) expanded at an annual rate of 6.6% in the second quarter of 2021. Real GDP climbed by 6.3% in the first quarter. Although GDP has missed economists’ forecast of 6.7%, it’s still above the 6.5% figure beforehand. Thus, the dollar is gaining strength and dragging the XTZ/USD lower.
Tezos Price Prediction- Technical Levels
Support Resistance
4.22350 5.67090
3.36940 6.26420
2.77610 7.11830
Pivot Point: 4.81680
XTZ/USD Crossed Below 50 EMA – Where to Buy XTZ?
The Tezos price prediction is bearish as it fell to the 4.47 level. However, it seems to reverse above the 4.45 level today. On the 2-hour timeframe, the XTZ/USD pair has completed 61.8% Fibonacci retracement at the 4.45 level, and the closing of candles above this supports strong odds of a bullish reversal.
As we can see, the XTZ/USD has closed a spinning top candle above the 4.45 level, followed by a solid downward trend. Typically, sellers are exhausted, the market is oversold, and bulls are looking to take over. With that being said, the chances of a bullish bounce remain strong, and the pair could surge to target 4.85 resistance.
On the bullish side, a further upward breakout could lead the Tezos towards 5.10 resistance. At the same time, the bearish breakout of the 4.47 level could push the pair lower towards the 4.30 and 4.10 levels. The 50 day EMA (Exponential Moving Average – Red Line) extends resistance at 4.60.
Since the XTZ/USD is tossing above and below the 4.60 level now, traders need a clear signal to go long. Thus, it’s better to wait for a couple of 2-hour candles to close above the 50 EMA line.
Forex trading participants may look for a buy trade above the $4.45 level to the target of $4.85 and $5.20. Alternatively, a sell-stop below $4.40 can help capture an excellent selling trade with a target of $4.10. All the best.
Where to Buy XTZ?
You can buy it on eToro. It’s one of the trusted exchange platforms in the crypto space. eToro supports copy trading, which allows new traders to learn from market experts. eToro also charges low trading fees and commissions.
Looking to buy or trade crypto now? Invest at eToro!
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