- Tezos (XTZ) soars by 5% in two hours vs Bitcoin (BTC) pair as faucet launch is completed.
- XTZ/BTC price crossed past the 26 days EMA on the hourly charts signaling a possible start of a bullish run.
- Tezos set to break into the top ten as “diversification asset” advantages claw in the market.
Tezos cracked into the top ten largest cryptocurrencies in December, bringing the staking project to the limelight. Since then the coin has dropped off from the list but remains a strong growth asset as seen by the 5% spike in an hour in the early London trading session.
Currently, XTZ changes hands at $1.46 USD, a slight 1% spike in the past 24 hours as bulls calm down from the sharp uptrend witnessed early this year. With Tezos Foundation and the community now able to access free Tezos to work with on the blockchain through the Faucet launch, every aspect of the 16th largest crypto looks bullish, apart from one indicator.
XTZ/BTC sets sights to break key resistance at 17500 sats
After failing to breach the key hourly resistance at 17500 sats in the early trading hours in the Asian crypto market, XTZ/BTC buls are once again on the quest to breach the level. The pair currently exchanges for 17180 sats, following a sharp 5% rise in an hour on Monday, January 20, 2020, 2.00 AM UTC. The hourly candle crossed passed the EMA 26 line signaling the start of a near term bullish momentum on the staking token.
While both BTC and XTZ are set to witness an uptrend on the USD market, XTZ/BTC looks set to witness a reversal in the coming days in preparation for the upcoming BTC halving. Despite the fundamentals looking bullish for the token, a triple top formation on the hourly charts sets fears for a change in market sentiments. Completion of the indicator will signify the end of the bullish run and a possible slip towards lower support levels at 15,000 sats.
Hope for XTZ investors and community?
The dark cloud hovering the Tezos market may be outdone by the strong fundamentals the staking token possesses. During the weekend, Tezos Foundation launched a cryptocurrency faucet to disburse a small amount of XTZ to induce adoption of the token, development and testing services.
This one is starting to reverse a bit, however, the $BTC pair is acting against resistance.
— Crypto Michaël (@CryptoMichNL) January 20, 2020
While the faucet cannot run forever, new users to the Tezos network will be able to join the network and have a real utility token at their disposal before deciding to take up more XTZ. Furthermore, with the price of XTZ having a low correlation with the top 10 coins, there may grow an affinity towards the token as a “diversification crypto-asset”.
3/ The table below, which examines cross-asset correlation in 2019, shows that the largest cryptocurrencies are all positively correlated with each other. Ethereum correlates the most with the other cryptocurrencies while BSV and Tezos the weakest. pic.twitter.com/bRcBHJpCS9
— Larry Cermak (@lawmaster) January 16, 2020
Tezos (XTZ) breaking the key resistance level at 17500 sats against its Bitcoin (BTC) pair will be a key level for traders and investors alike to watch as the market reacts to the launch of the new faucet by Tezos Foundation.