XTZ reaches key support and can follow LINK in the short term
XTZ price has been caught in a downtrend over the past few weeks, slowly falling along with Bitcoin and Ethereum while most other mid-cap altcoins suffer from parabolic momentum.
Analysts are currently noting that the next destination may depend almost entirely on LINK, as many investors consider the XTZ a “slower LINK” from a price perspective.
It is still unclear whether the two assets are really correlated but one analyst believes that the next LINK trend will provide guidance for XTZ.
Major support level
At the time of writing, Tezos is trading slightly down at $ 3.25. This is the price at which it has been trading for the past few hours.
Yesterday, it faced a huge influx of selling pressure that caused it to slide from as high as $ 3.5 to as low as $ 3.1.
This movement paralleled the drop in Bitcoin, falling from $ 11,600 to as low as $ 11,150. In the time since then, XTZ has been able to recoup most of these losses.
Analyst “Crypto Michaël” notes that the price range between $ 3.1 and $ 3.2 is strong support that could ultimately help the XTZ move higher in the short term.
“Very simple, arrived at the area that I initially targeted for longs. Takes time, but you should always let the trade come to you rather than chasing it.”
Very simple, arrived at the area that I initially targeted for longs.
Takes time, but you should always let the trade come to you rather than chasing it. pic.twitter.com/VcoyNUyBiD
— Crypto Michaël (@CryptoMichNL) August 27, 2020
LINK can lead XTZ in the short term
Due to a somewhat loose correlation formed between XTZ and LINK in recent months, analyst “DYORangutang” believes that the next LINK trend will affect XTZ.
“If LINK runs, XTZ should follow like it usually does. Not a bad spot, right at support.”
Currently, LINK is also in a short-term downtrend, with prices currently hovering between a low of $ 13.5 and a high of $ 16. Any level breaks first will provide insight into the short term trend of the XTZ.
You can see the XTZ price here.
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