Tezos (XTZ) Consolidates After Failing to Turn Positive!

The change in a scenario within a short interval has affected the positive outlook of XTZ in recent weeks. From a probable breakout towards 200 EMA, the token has succumbed significantly below 100 EMA. Tezos’s fundamental grounds are stronger as its blockchain can support dApps, DeFi, and Smart Contract ecosystem using a Proof of Stake valuation system with its own merits. The larger energy consumption and lower transaction fees are the primary advantages that motivated ETH to move towards Proof of Stake after its long thought development strategy.  

XTZ currently ranks at the 39th position with a market capitalization of more than $1.44 billion. Since the maximum supply of XTZ is not released, the staking rewards would continue to improve if more validators move towards the XTZ platform. Even the infrastructure of Tezos is more advanced and capable of accepting changes without using a hard fork and destroying the original code. This open-source platform is secure, upgradeable, and built to last. With 8000 XTZ tokens, holders can participate in the governance of this blockchain.

Tezos cryptocurrency has met a wall of resistance in the form of 100 EMA that shook the very fundamentals of buyers. The price action attempts to find solid ground or support as XTZ tests the value under current consolidation. A breakout possibility looms larger for the Tezos network with unpredictable factors at play. Find out what is the best investment decision for you under current circumstances in our Tezos predictions for the long-term.

XTZ Price chart

The outlook of XTZ tokens has moved towards consolidation to find its bearing in the current sentiment of buyers and sellers. A new short-term resistance can be seen developing near the $1.93 mark, but initial candles carry wicks that indicate a strong buying. Coming to the current price analysis and momentum of candles, the creation of the August 26 candle has completely engulfed the gains made on the previous day.

This Tezos price action indicates the profit booking sentiment to continue pushing the value of the XTZ token further towards the red zone. $1.477 can be taken as immediate support since the last upside swing that started in the last week of July took support from this level.

The RSI indicator has moved into a negative zone, with each green candle adding a few positive points, while the MACD indicator is strongly trying to move towards a bullish crossover. Once a positive indication is confirmed on MACD, the possibilities of a positive breakout will also increase.

Moreover, surpassing the 100 EMA curve is a must for XTZ to move towards a positive trajectory. Tezos faces a higher strength in profit booking with little to no support available at current trading values. Hence, buyers should wait for a positive indication and avoid catching this falling knife. 

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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