Coinbase announced on Wednesday that it will offer staking rewards based on the holdings of Tezos (XTZ) for U.S. customers. The exchange will stake Tezos for customers on their behalf then directly distributes the rewards to their account.
Staking is a process in which you earn income by participating in the network of an asset with your cryptocurrency. When you stake, you help the blockchain of that asset become more efficient and secure. In return, the network rewards you with more of the asset. Coinbase estimates that the rewards for staking will be around 5% annually. This is a projection that is based on their own rewards earned over the past 90 days.
Nevertheless, the XTZ price is likely still in its correction phase. For the next upward move, a high of $5.60 seems entirely within reach.
Crypto trader @jiucrypto stated that the expectations for Tezos have begun getting out of hand. He disagrees with the Ethereum price comparisons since the supply of XTZ coins is six times higher than that of Ethereum.
— JiuCrypto [Telegram channel: t.me/jiusgems] (@jiucrypto) November 7, 2019
Still in a Correction
The XTZ price has performed admirably in 2019, at one point having increased by 300% relative to the price on Jan 1.
However, it has been decreasing since reaching a high of $1.82 on May 16, indicating that it still mired in a correction.
During this correction, XTZ has been trading inside a descending wedge.
Today, it initiated a very rapid increase. However, once it reached the resistance line, it created a long upper wick and has almost created a bearish candle.
Furthermore, it is trading below the 200, and possibly the 100-day moving averages (MA), which have made a bearish cross.
The all-time high of $12 was reached on Dec 17, 2017. Below that, there is a major resistance area at $5.60.
Using a Fibonacci retracement tool on the current correction, this area coincides with the 4.618 fib level, making it a suitable level for reaching the next high.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!
The post Tezos Price Spikes After Coinbase Announces Staking appeared first on BeInCrypto.