Tezos (XTZ) Breakout Seems Imminent If It Crosses $1.97
Tezos as a blockchain was ideated to overcome the lack of governance process in Bitcoin’s ecosystem. The idea was to create a blockchain capable of accepting changes and improvements without undertaking the hard fork’s complicated path. With moto being secure, upgradeable, and built to last. Tezos considered Ethereum as its prospective competitor as this blockchain also offers smart contract features. From its white paper proposal in September 2014 to being launched in 2018, XTZ has taken a decent uptrend.
Tezos blockchain and its tokenomics are worth $1.68 billion, with more than 90% of its token already available in the circulating supply. Tezos Foundation was created to control the intellectual property rights related to the network; as such, the development isn’t leaked and copied by other blockchains.
As Tezos works on a Proof-of-Stake validation algorithm, the token requires an individual to stake 8000 XTZ to participate in baking operations related to governance voting. This step ensured a financial incentive for the honest validation process.
Tezos (XTZ) Price Analysis
XTZ token has met its major resistance in the form of 100 EMA. A clear lack of buying sentiment can be seen despite trading above this important level. This price action indicates a hesitation on the part of buyers to take advantage of such price action.
The price movement of XTZ at present creates the best opportunity to await a breakout, but a resistance above 100 EMA gradually develops into a tougher opponent for buyers. While the sentiment of overall buying has halted since its competitor and rival ETH is gaining significant pump. XTZ has already been trading in a bearish crossover pattern of MACD, created on August 14, 2022, as the first failure from the 100 EMA curve.
A strong holding pattern is required to confirm a bullish sentiment above the 100 EMA curve can push the value of this token even higher. RSI indicator is currently trading in a slightly bullish zone above neutral territory with a level of 55 on the histogram. The short-term outlook seems to have tested its peak buying strength, and XTZ is about to enter into a negative swing. To get a detailed view of possible price action, explore our Tezos price predictions.
The volumes on August 17, 2022, reached double the previous day’s transaction volumes, indicating a significant market dump of tokens. As such, the trend reversal from above 100 EMA to create a pinball negative candle indicates the lack of buyer’s ability to counter profit booking and selling sentiments.
The price action has been slow but positive, with each swing closing on a higher level than its previous one. Hence, support has developed stronger near $1.22 levels. The new support for the XTZ token hasn’t yet been tested, creating a higher probability of some retracement from its resistance zone currently active from $1.94 to $1.98 levels.