Tezos Price Up by 6.4% – Time to Buy XTZ Coin?
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- A dip in the crypto market can also be associated with the appointment of a new senior crypto advisor.
- SEC continues to experiment with establishing specific laws on the digital asset market.
- A break below $4.50 support can expose the XTZ/USD price towards $4.43 or $4.10 support zones.
Tezos price is trading with a bullish bias at $4.59, having soared over 6% on Saturday. The XTZ/USD is heading towards 61.8% Fibonacci retracement at the $4.80 level after completing 50% retracement at $4.7. Surprisingly, the Tezos exhibit a bullish correction, while Bitcoin and other altcoins are downtrends.
Crypto coins are on a downtrend.
According to investors and analysts, the rising number of cases of the Covid omicron version in the United States is a primary reason for the dip in Bitcoin prices in December. After the release of the omicron form, Ethereum was up more than 400 percent in 2021, but it is on the verge to have its worst month since March 2020, as investors reevaluate their exposure to risky assets. Bitcoin is on track to double the S&P 500 this year, while ripple is up more than 200 percent, but both are down double digits this month.
With growing interest in blockchain and crypto as a whole, this might be a good opportunity to buy Tezos and rise with the market.
The SEC Appoints New Senior Advisor for Cryptocurrency Oversight
The dip in the crypto market can also be associated with the appointment of a new senior crypto advisor. Chairman Gary Gensler of the Securities and Exchange Commission has hired Corey Frayer to advise him on cryptocurrency rules. In addition, Frayer has worked as a professional staff member of the Senate Banking Committee and as a policy adviser for the House Financial Services Committee in the past.
The US watchdog has a tumultuous relationship with the bitcoin world. Many saw Gary Gensler’s nomination as Chairman earlier this year as a positive step for the industry because he was “intrigued” by crypto and taught blockchain seminars at MIT. Earlier this year, the Commission ultimately approved two Bitcoin ETFs under his leadership, even though futures contracts rather than spot BTC backs them. According to Gensler, Bitcoin ETFs backed by futures might provide investors with more safety.
SEC continues to experiment with establishing specific laws
Despite recent talks between regulators and crypto CEOs, the SEC continues to experiment with establishing specific laws on the digital asset market. For instance, the Commission has recruited Corey Frayer to advise Chairman Gensler on “SEC policy-making and interagency work relevant to monitoring crypto assets” in the latest attempt to improve its cryptocurrency observation.
According to the release, Frayer has held various key positions in the country’s political landscape. Apart from the aforementioned jobs, Frayer served as a senior advisor for a decade, “working on topics ranging from consumer and investor protection.” Let’s now look at the technical side of the XTZ/USD.
Tezos short-term forecast – XTZ/USD gained support at $4.5
The XTZ/USD attempted to recover from the double bottom support level of $3.8. The price, however, was unable to break through the nearest resistance level of $4.85, and after receiving a strong rejection from this level, it fell back to the bottom support.
This pair stayed at this level for around two weeks before breaking over the above barrier on December $23. The next day, the price maintains the retest phase, and it appears to be ready for an upward rebound after forming a morning star candle pattern.
With its apparent bullish divergence, the daily Relative Strength Index (62) shows increasing bullishness in the price. Tezos coin must retake the critical resistance level of $5.8 to confirm a new surge. The $4.5 level will now support crypto traders, allowing the price to climb towards the overhead resistance. However, a minor resistance level exists between $5.8 and $5.2, and the price is $5.2.
What’s next on the technical front?
Crypto traders should watch this resistance since it can potentially halt the new rally. Both lines of the Moving Average Convergence Divergence move above the neutral line, indicating that the token has a favorable outlook. A bullish crossover of these lines is also visible on the chart, giving a bullish signal.
The 50-days exponential moving average (EMA) also suggests an uptrend in XTZ/USD coin while providing support at the $4.45 level. On the bullish side, the XTZ/USD may go after $4.8 (61.8% Fibo), and a crossover above this level can expose the pair towards $5.10. Alternatively, a break below $4.50 support can expose the XTZ/USD price towards $4.43 or $4.10 support zones. All the best.
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