21.6 C
27 September 2023
Image default

This Textbook Indicator Suggests Tezos (XTZ) Will Soon Recover Against Bitcoin

Earlier this month, Tezos (XTZ) was all the rage. After Bitcoin stalled in the $11,000s, the price of the altcoin shot higher independently of the leading cryptocurrency. As a result, the XTZ/BTC pair moved higher, reaching crucial levels not seen in months.

But even since last week, Tezos has been on the decline. To be fair, most altcoins have been declining against Bitcoin as capital rushes back into the market leader.

XTZ is expected to soon bounce as the Tom Demark Sequential, a popular technical indicator, prints a bullish reversal signal for the asset.

TD Sequential Is Predicting a Reversal in Tezos’ Bitcoin Pair

The Tom Demark Sequential is suggesting that Tezos may make a comeback against Bitcoin after a one-week retracement.

A Telegram chat tracking the indicator, which forms “9” and “13” candles at inflection points in a trend, shared the chart below. It shows that XTZ/BTC just formed a “buy 9,” indicating XTZ will reverse against Bitcoin.

The Tom Demark Sequential has been used accurately on Tezos in the past, as indicated in the chart below. The indicator formed “buy C-13” candles at the lows in early July and early August, and almost marked the highs earlier this month.

Chart of XTZ/BTC's price action over the past two and a half months with the Tom Demark Sequential. Chart from TradingView.com

The appearance of this signal comes after the head of a cryptocurrency fund seemingly suggested that XTZ is primed to bounce as Algorand and Cosmos move higher:

“XTZ was q1 darling as the staking narrative gripped the masses, led to spillover in cosmos and atom. Cosmos getting buddy buddy with defi in the new initiatives, and Algo putting it in pressers and dec upgrades, if im a betting man which I am tezos does the same soon.”

XTZ Fundamentals Weak Due to DeFi? 

The fundamental value in investing in XTZ, though, has been perceived as weak by analysts.

Crypto-centric economist Alex Krüger recently remarked that the emergence of yield farming through DeFi has indicated there is little value to Tezos staking/baking:

“XTZ is not the slow LINK cousin. One is a protocol token, the other an oracle token. XTZ is getting murdered for a good reason: its staking appeal has collapsed with the emergence of yield farming.”

Tezos offers around 6% per annum while yield farming opportunities can yield and have yielded thousands of percent per annum. These yields are not sustainable, of course, but on balance, a DeFi user can easily outpace an XTZ holder.

News Source

Related posts

Cardano: IOHK activates hard fork combinator for token locking


Cryptocurrency Market News: Ripple rockets as Bitcoin and Ethereum struggle to contain gains


Bitcoin masterplan breakout eyes $22,500 as crypto bull market nears the ultimate flipping point