Shaurya Malwa · 17 mins ago · 2 min read
Tezos › Binance › Derivatives
Binance Futures launches Tezos perpetual contracts as XTZ breaks above a multi-year resistance level
Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.
Binance recently announced the introduction of a new Tezos derivative product. The launch of this financial instrument comes at a time when XTZ broke above a multi-year resistance level signaling higher highs.
Tezos derivatives on Binance
On Feb. 5, the world’s largest cryptocurrency exchange by trading volume, Binance, revealed that it will be launching a Tezos perpetual contract on its crypto derivatives trading platform, Binance Futures. The contract will be leveraged and paired against stablecoin Tether (USDT), according to the announcement.
The newest perpetual swap will begin trading on Jan. 6 at 08:00 AM (UTC). Users will be able to trade the XTZ/USDT perpetual contract with up to 50x leverage.
Binance disclosed that it will implement a pricing limit of ±1 percent on the market price during the first 15 minutes of trading in order to prevent market manipulation.
The launch of XTZ/USDT perpetual contract on Binance Futures could be the catalyst that pushes this cryptocurrency to new yearly highs as it recently broke above a hurdle that was holding its price for the past two years.
A bull rally on the horizon
Since. Jan 3, Tezos entered a bull rally that has seen its price surge by nearly over 80 percent. The bullish impulse allowed it to break above the $1.80 resistance level. This significant barrier was containing XTZ from a further advance since September 2018. Now, it seems like this cryptocurrency could be preparing for a further advance.
Based on its 3-day chart, Tezos broke out of an inverse head-and-shoulders. This technical pattern estimates a momentum reversal from bearish to bullish. Closing above the $1.80 resistance level, also known as the neckline, served as confirmation of this bullish formation and now this crypto could climb up to $2.74.
This target is given by the head-and-shoulders pattern and it is determined by measuring the distance between the head and the neckline and adding it to the breakout point.
Binance’s new derivatives product could bring a new inflow of capital into Tezos. This could allow it to continue trending up and meet the target given by the bullish formation mentioned above. Time will tell whether this event would indeed be a pivotal point for XTZ’s trend.