- Tezos price sees bulls being squeezed to the downside in a negative trading session during European hours.
- XTZ price has no answer to global market worries after headlines on Saturday and Sunday triggered a sell-off at the open.
- Expect to see a possible extended drop should the US session take over the European spirit as most US traders are off on a long weekend.
Tezos (XTZ) price action already lost 3% during the European session as European markets were slaughtered after governments issued several measures to avoid a full collapse of the energy market. The issue came about after Russia halted Europe's gas supply. With the geopolitical tail risks flaring up, markets are set to choose safe havens over risk assets, which means bad news for Tezos price action.
XTZ price set to drop to $1.40
Tezos price sees investors fretting and worrying about what to do next after the news flow erupted on Sunday evening just hours before the ASIA PAC trading session was about to begin. The trigger came from a joint statement from Sweden and Finland saying they had to issue an emergency fund to safeguard energy supply as a few market makers were near bankruptcy on the back of elevated margin calls from energy futures. On Monday morning, heavyweight Germany came out with a similar statement, triggering another leg lower in the euro, with dollar strength resulting in a headwind for cryptocurrencies.
XTZ price will see bears pushing to the downside towards roughly $1.40, which is the low of two weeks ago and is near August’s monthly S1 pivot. If that level does not hold, expect another 9% drop towards $1.30, with the monthly S1 for September situated nearby to catch any dips. Together with that, the Relative Strength Index (RSI) will have hit the oversold marker and should be ready for a pickup by bulls.
XTZ/USD Daily chart
As several floors are being identified, a very big sell-off does not seem to be unfolding just yet. The energy crunch is quite distant from cryptocurrencies as an asset class, so the negative spillover effect is likely to be rather contained and possibly see a turnaround in the price action as early as Tuesday. Expect to see a little pop higher towards $1.60, from which the double cap comes into play. That resistance band contains the 55-day simple Moving Average (SMA) and the monthly pivot just below $1.70.
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.
Recommended Content
Editors’ Picks
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Cardano founder Charles Hoskinson proposed integration of Bitcoin Cash into a Cardano Partnerchain. 65% of 11,340 voters voted in favor of, to the contrary “No”, meaning “Ayes” have it, but this is pending confirmation.
Render Price Prediction: RNDR could hit $10 after successful breakout with ecosystem’s LD token launchpad
Render (RNDR) price is trading with a bullish bias, boasting higher highs, with the AI crypto coin not only outperforming its sector peers, but also doing better than most altcoins in the broader cryptocurrency space.
Tesla updates payment methods to include DOGE, Dogecoin price rises 6%
Tesla Inc., Elon Musk’s American multinational automotive and clean energy company headquartered in Austin, Texas, is the latest catalyst for Dogecoin (DOGE) price rally.
Sui daily transactions reach 41 million, overtakes Solana with SUI price primed for recovery
Sui (SUI) price has dipped 3 % in the past 24 hours and remains down 15% in the last week. However, other metrics suggest something could be at play in the Sui ecosystem as daily transactions skyrocket.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.