Tezos Price Forecast: XTZ sees traders pre-positioning after taking profit before central bank announcements


Share:
  • Tezos price withstands US Dollar strength this Tuesday morning as the currency rallies.
  • XTZ stays flat and finds support as traders are done taking profit.
  • Expect to see some pre-positioning toward a weaker US Dollar and more upside.

Tezos (XTZ) price had a gut-punch move on Monday with price action sliding over 8% as equities sold off in the US trading session. Overall, this morning the sell-off looks to be halted, which labels the drop-off on Monday as pure profit-taking in the wake of central bankers coming out with announcements by Wednesday. Expect some pre-positioning with bulls looking for bargains and scooping up some price action at the lows this week.

Tezos price sees bargain hunters scalping

Tezos price was no different from other asset classes as this week is set to kick off very violently on data, and central bank messages are kicking in. Traders were caught off guard on Monday morning with Spanish inflation rising surprisingly, and this morning French inflation jumped higher as well. This means that the European Central Bank will need to step up its rate hikes and even hike more. Traders are choosing money for their eggs and taking profit on their risk assets as some fear is creeping into the market that the Fed will stick to its same hiking pattern should they see inflation jump higher. 

XTZ currently finds a floor around $1.05 and sees some bidding coming in as scalpers and bulls are looking to pre-position on the back of the trade idea that the Fed will deliver only a 25-basis-point hike and will fall in line with the expectations of markets. Expect more bids to come in by Wednesday as the market and liquidity will dry up near the US rate decision later on Wednesday. Expectations are that it will fall in line, and a break above $1.19 looks granted with the next price of $1.40 on the docket as a profit-taking level.

XTZ/USD daily chart

XTZ/USD daily chart

Some risk needs to be factored in, in case the Fed either hikes again by 50 basis points or does a 25-basis-point hike but instead delivers a very bearish message that points to more future hikes. That would mean that the market is wrong in its point of view and needs repricing. That then means that repricing will push risk assets lower, and XTZ will flirt with a break below $1 toward $0.90.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.

More Shiba News

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.

More Lido DAO News

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27.  RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.

More Rune News

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.

More Chainlink News

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.

Read full analysis

BTC

ETH

XRP