Tezos Enters Resistance Zone; Can XTZ Sustain the Previous Gains?
The capability of a blockchain to make modifications and improvements in its network is the only thing that stands between the longevity of its cryptocurrency’s real-life applications. No matter how valued a cryptocurrency might be, if it is not able to tackle the modern-day challenges, it is bound to be decimated by a competitor who can incorporate modern-day solutions.
Tezos, in recent days, has emerged as the most significant competitor to the Ethereum blockchain network. Since holders of Tezos can vote on proposals for modifications to its protocols, they can easily be upgraded by the developer’s team. Such alterations in the market leader ETH and BTC can only result in a hard fork.
Being open-source, XTZ is more secure and can easily be upgraded to face the latest challenges in the crypto world. The reason for significant blockchains failing in recent years has been a result of poor governance. For a holder to become an active part of the governance, they will have to hold at least 8000 XTZ. Tezos currently holds the 31st position in terms of market capitalization. It is currently valued at USD 5.2 billion, with each crypto having a value of close to $6.2.
TEZOS Price Analysis
Tezos cryptocurrency has one positive element in its price action that is the trend line. Since July 21, 2021, Tezos has been moving positively with the strong support of technical indicators and following a stringent trend line. Each time profit booking brought XTZ towards the trend line, we have witnessed an explosive buying in the next few days marking a new high.
The level between $6 to $7.25 is a resistance zone, while the 100 DMA and trend line has become a buying zone. With all immediate resistance levels already breached, there is a strong sentiment riding the price action, which shows the capability of the XTZ coin to trade above its all-time high on a closing basis that comes to $7.65. This level is currently 25% away from the last traded value of $6.32.
On the indicator front, whether it be the volumes or the resistances, all point towards the positive sentiment. RSI levels have bounced back from 45 to 55 levels, indicating buying at trend line levels.
The 100 DMA curve comes around $4.4, and the 200 DMA curve comes out to be $3.9, with the curve heading upwards, indicating the supports moving upwards. Such price movement re-affirms the potential of XTZ to create a new high in the near term.
XTZ has finally entered the upper resistance zone with two consecutive days of buying. This zone has an upper limit of $7.25 and a lower limit of $6.05. Trading above $6 can help XTZ inch closer towards its previous immediate and decisive resistance levels. While falling from this level would take support around $5. RSI indicator is positive, and so have the volumes been rising.
According to our XTZ price prediction, one should wait for the breach of $6.5 levels before taking any action. XTZ has multiple supports at lower levels.