The crypto market is stabilizing after heavy losses last week. Most coins are attempting to generate demand for a bullish run, and Tezos (XTZ) is no exception. The coin appears poised for a modest uptrend in the coming days. Key takeaways are below:
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XTZ is consolidating above a crucial support zone at $1.60
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If price action remains above this zone at today’s close, XTZ could test $2.00
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Despite short-term strength, the coin remains in a longer-term bearish trend
Data source: TradingView
How quickly might XTZ reach $2?
There is no simple answer. As you know, crypto sentiment has been difficult to predict in recent months. Right now, investors appear cautious as market headwinds continue to erode gains.
Still, we expect XTZ could climb above $2 in the coming days if conditions hold. The critical factor for the altcoin is maintaining support at $1.60. As long as bulls keep price action above that level at the close of trading today, further upside toward $2 becomes more likely.
Of course, there is a risk that the $1.60 support could fail. If that occurs, XTZ would likely find a bottom near $1.30 before attempting a recovery. Despite the potential short-term upside, the broader trend for XTZ remains bearish, and the coin may suffer further declines through Q2 2022 if negative market conditions persist.
Is Tezos a good coin?
Looking at Tezos’ value proposition, it remains a respectable project with real technical merits. That said, the recent price decline is concerning: XTZ is down roughly 80% year-to-date.
Nevertheless, we expect some recovery before the end of 2022, particularly if overall market sentiment improves. Based on these considerations, XTZ could be an attractive buy for long-term investors who are comfortable with volatility and the risks associated with the crypto market.