Tezos aims for $2 after consolidating above a key support zone
The crypto market is stabilizing after steep losses last week. Most coins are trying to generate demand for bullish runs, and Tezos (XTZ) is not any different. The coin in fact looks poised for a decent uptrend in the coming days. Check out the main takeaways below:
XTZ is consolidating above its crucial $1.6 support zone
If the price action remains above this zone at the close of trading today, XTZ could test $2.
Despite this, the coin remains in a long-term bearish trend.
Data Source: TradingView
How soon will XTZ cross $2?
It’s actually not easy to answer this. As you know, sentiment in crypto over the last few months has been quite hard to predict. At the moment, it seems investors remain fearful as headwinds in the market continue to wipe away profits.
However, we expect XTZ to brush across $2 in the days ahead. The key for the altcoin would be to maintain the $1.6 support. As long as bulls keep the price action above this zone at the end of trading today, then we will see more upside towards $2.
But there is of course a risk that $1.6 could be lost. If this happens, XTZ will likely bottom at $1.3 or thereabout before it makes a comeback. However, despite this short-term upside, the overall trend for XTZ remains bearish. The coin will likely accelerate losses in Q2 2022.
Is Tezos a good coin?
If you are looking at the value proposition that Tezos offers, then you will agree it is a decent project. The recent slump in the price is however worrying. XTZ is in fact down 80% this year.
Nonetheless, we expect some recovery before 2022 is out, especially if overall sentiment in the market starts to improve. Based on these metrics, XTZ should be a decent buy for long-term investors.