XTZ May Drop Towards $3.00 As The Selling Pressure Enhances

XTZ may drop towards $3.00 as the price action the past week as favoring the sellers and the buyers were unable to catalyze the strong uptrend while still being unable to protect the asset from today’s market sell-off so let’s read more in the following Tezos news.

The drop seen by the cryptocurrency at the start of the day led to the plunge of new lows at $3.60 which marks a huge decline from its multi-day high of $4.40. The sharp decline marked a bearish resolution to a consolidation phase that the cryptocurrency was caught within recently. Where it will trend next it depends by whether Bitcoin can stabilize within the upper $11,000 region or will it face further selling pressure that will push it lower.

Another decline in Bitcoin’s price could mean that XTZ may drop as well, creating a headwind for the entire market. One analyst is now watching a move down to $3.00 for XTZ with this being the key USD support level that could stop if from seeing more downsides. At the time of writing, TEzos is trading marginally with a current price of $3.85 which is around where it was trading after rebounding from the daily lows of $3.60 which were set at the bottom of the overnight selloff.

The recent downtrend came about when the cryptocurrency got rejected at the highs of $4.40 a few days ago. Before hitting the highs, it was caught within a prolonged period of sideways trading between $3.90 and $4.20. Unless bitcoin rallies higher and creates a way that will lift all altcoins higher as well, the cryptocurrency could soon drop lower. One analyst even noted that Tezos is sitting on some interesting levels now while looking towards the BTC trading pair. It could find enough support against BTC to slow down the USD trading decline:

 “Interesting, interesting. On some interesting levels here. USD value might come a bit lower, but my eyes are focused.”

While looking at the USD trading pair, the same analyst offered another outlook saying that he believes XTZ could get low to $3.00 before it can find any notable support. With that being said, before hitting new levels, XTZ could rally first to the regions between $4.20:

 “That’s why you wait to buy the dips. Didn’t get fully loaded on this one, but it’s bouncing nicely. Given that I assume BTC will range for a bit, I think $4.20-4.30 isn’t odd to expect.”