How the 200 Daily MA Could Provide Crucial Support for Tezos (XTZ)

Quick take:

  • The correlation between Tezos (XTZ) and Bitcoin (BTC) is high in the crypto markets.
  • As Bitcoin looks set to revisit previous support zones below $6,900, XTZ has the 200 Daily MA acting as much needed support.
  • The recent announcement of a Tezos token backed by BTC further proves that the future is bright for the project.

On this Good Friday, Bitcoin (BTC) has in the last few hours lost the support zones of $7,200 and $6,900. The King of Crypto is currently trading at $6,800 (Binance rate) and looks set to test previous support zones of $6,600, $6,500, $6,200, $6,050 and possibly $5,800. It is with the current bearish market environment, that Tezos (XTZ) is also in the red. The coin is currently ranked 10th on Coinmarketcap and has undergone a 12% drop in the last 24 hours. At the time of writing this, XTZ is trading at $1.86 and looks set to follow BTC on a similar downward trajectory.

XTZ/USD 200 Daily MA Offers Crucial Support

The reason for the expected drop is that the correlation between XTZ and BTC has always been known to be high. It has further been analyzed by the team at CoinPredictor as having a value of 0.84. This value is derived from a scale of -1 and 1 with the latter value being the strongest correlation to BTC.

How the 200 Daily MA Could Provide Crucial Support for Tezos (XTZ) 18
XTZ/USD courtesy of Tradingview.com

Further checking the daily XTZ/USD chart courtesy of Tradingview, we find that XTZ’s current value of $1.86 is below both the 50 (white) and 100 (yellow) moving averages. The coin is clearly in bearish territory. However, we can see that the 200 (green) daily moving average provides a strong support zone for the price of the coin at around $1.60.

Coinbase 2

Given the high daily MFI value of 73, it is worth mentioning other notable support zones. They include:

  • $1.83
  • $1.66
  • $1.50
  • $1.45
  • $1.13
  • $1.00

Launch of tzBTC

Earlier on in the week, the Bitcoin Association Switzerland announced the launch of Bitcoin backed token on the Tezos blockchain. Aptly named tzBTC, the token uses a smart contract to ensure that its value is the equivalent of BTC in real-time. The team further explains how it will function through the following statement.

The governance mechanism of the tzBTC contract allows for the compliant and secure issuance of BTC-backed tokens on the Tezos blockchain. The various responsibilities are managed by several key stakeholders: the Association, Keyholders, Gatekeepers, and Users.

The Association monitors the tzBTC issuance process whereas Keyholders are responsible for the custody of BTC. Additionally, Gatekeepers act as financial intermediaries and often serve business-to-consumer markets. Users buy, sell and hold tzBTC. More on this can be found here.

Conclusion

With the correlation of Tezos and Bitcoin (BTC) set at 0.84, the 200 daily moving average acts as crucial support for XTZ. As the bearish environment set by Bitcoin and the global impact of the Coronavirus continues to prevail, XTZ has several support levels all the way to $1. The coin also has a bright future fundamentally, as more projects continue being built on its network. That being said, it might be a few more days before the crypto markets are in bullish territory once again.

(Feature image courtesy of Josh Adams-Ford  on Unsplash.com.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

How the 200 Daily MA Could Provide Crucial Support for Tezos (XTZ) 1
blank
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

blank

E-Crypto News Executive Interviews


blank

bitcoin
Bitcoin (BTC) $ 37,561.00
ethereum
Ethereum (ETH) $ 2,567.48
tether
Tether (USDT) $ 0.999798
binance-coin
Binance Coin (BNB) $ 325.03
cardano
Cardano (ADA) $ 1.34
xrp
XRP (XRP) $ 0.706905
usd-coin
USD Coin (USDC) $ 0.998596
dogecoin
Dogecoin (DOGE) $ 0.195103
polkadot
Polkadot (DOT) $ 18.16
binance-usd
Binance USD (BUSD) $ 0.991362
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 37,561.00
ethereumEthereum (ETH)
$ 2,567.48
tetherTether (USDT)
$ 0.999798
bitcoin-cashBitcoin Cash (BCH)
$ 525.84
litecoinLitecoin (LTC)
$ 137.13
bitcoinBitcoin (BTC)
31.593,12
ethereumEthereum (ETH)
2.159,55
tetherTether (USDT)
0,840945
bitcoin-cashBitcoin Cash (BCH)
442,29
litecoinLitecoin (LTC)
115,34
bitcoinBitcoin (BTC)
26,960.72
ethereumEthereum (ETH)
1,842.90
tetherTether (USDT)
0.717640
bitcoin-cashBitcoin Cash (BCH)
377.44
litecoinLitecoin (LTC)
98.43

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

blank
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
blank
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021
Crypto Scams On The Rise As Market Enters Bull Cycle
Crypto Scams On The Rise As Market Enters Bull Cycle
December 22, 2020
Harpreet Singh Sahni perpetrated the Plus Gold Union Coin (PGUC) scam
Sydney Concert Promoter Harpreet Sahni Involved In $50M Crypto PGUC Scam
November 2, 2020

Blockchain/Cryptocurrency Questions and Answers

Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021
blank
What Is Plethori Platform And How Does It Work?
June 12, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin37,925 0.27 % 3.05 % 5.26 %
Ethereum2,616.8 0.46 % 0.38 % 13.79 %
Tether1.000 0.30 % 0.46 % 0.52 %
Binance Coin327.67 0.01 % 0.71 % 4.45 %
Cardano1.360 0.02 % 0.81 % 5.63 %
XRP0.7109 0.43 % 1.28 % 1.84 %
USD Coin1.000 0.16 % 0.12 % 0.38 %
Dogecoin0.1966 0.26 % 1.75 % 5.67 %
Polkadot18.38 0.31 % 0.31 % 26.40 %
Binance USD1.000 0.38 % 0.21 % 0.09 %

bitcoin
Bitcoin (BTC) $ 38,203.00
ethereum
Ethereum (ETH) $ 2,692.14
tether
Tether (USDT) $ 1.01
binance-coin
Binance Coin (BNB) $ 331.12
cardano
Cardano (ADA) $ 1.37
xrp
XRP (XRP) $ 0.718703
usd-coin
USD Coin (USDC) $ 1.01
dogecoin
Dogecoin (DOGE) $ 0.198673
polkadot
Polkadot (DOT) $ 18.61
binance-usd
Binance USD (BUSD) $ 1.01