Tezos Defends Major Support Level But Struggles To Gain Momentum

Tezos defends major support level but it is struggling to reestablish momentum as it started witnessing mixed price action over the past few days and weeks. According to our Tezos news today, we can see that the cryptocurrency is caught within what seems to be an extended consolidation phase while forming a wide trading range between $3.20 and $3.50 over the past days.

XTZ visited a lower boundary of the range earlier in the day when the price saw a flash crash to the lows. The rebound was harsh and since then XTZ was able to climb to the mid $3.00 region. Analysts are offering mixed outlooks about the cryptocurrency saying that it was able to defend a critical support level while remaining in a precarious position over its inability to break above crucial descending trendlines. Tezos is trading up over 5% at a current price of $3.40 which marks a notable upswing from the lows of $3.20 which were set earlier this morning.

The ongoing sideways trading has done nothing to offer insight into the mid-term outlook as Tezos was having a hard time maintaining the momentum which led it from the lows of $2.25 back in July, to a high of $4.40 in August. One analyst noted that XTZ is approaching a key support region as analysts were watching for a while now. Tezos defends major support level which could send the asset back to $4.00:

 “Still looking to accumulate some XTZ in these regions, before it goes to $4.”

Another popular crypto analyst explained that Tezos is beneath the key descending resistance levels that were seen while looking at the BTC trading pair. He believes that the asset will have a hard time gaining momentum in the near=term:

 “XTZ still has a lot of work to do to reverse the short-term downtrend – Note unbroken downtrend lines on both BTC and USDT pairs.”

If bitcoin continues pushing higher, the mid-cap altcoins could remain stagnant and this could offer an insight in the near-term trend. Analysts are now noting that the next cryptocurrency trend will depend on Chainlink entirely as many investors have been treating XTZ as a “slower LINK” from a price perspective. It still remains unclear whether these two assets are truly correlated but the traders are trying to play a correlation that could end up in actually manifesting it. one analyst even noted that where LINK trends next will provide guidance for Tezos.