Tezos (XTZ) price was in uptrend since mid June, rising from the low of $0.71 and recovering losses occurred during start of June. The cryptocurrency price surged approximately 32.37% and formed a high at $0.939.
The price faced strong rejection above $0.90 and bears entered into the market to push price down. On July 24, XTZ price broke the uptrend finding support at $0.81. The trendline was retested but the bears dominated and pushed the price down.
Recently, Tezos price formed a support at $0.79 and has started to consolidate on the lower time frames. The price is striving to rise and close above $0.80 but bears are not letting the move happen.
If a candle can close below $0.79, there is possibility that price might head toward the next support level of $0.75 but it should have followup momentum.
On the other hand, if the price breaks the support turned resistance level of $0.81, there is possibility that price might head toward $0.845.
Quarter 2 Report Of Tezos
Messari, A crypto research firm released quarterly report of Tezos on 25 July. Tezos has been progressing in its roadmap development. The recent launch of network upgrade (14th), nairobi has brought significant improvement to the platforms, new enhanced attestations rollup functionalities.
Also, the total value locked nearly doubled since the last year. The platform is also witnessing launch of new DeFi protocols, including decentralized exchanges, preps protocol and lending protocol.
The market capitalization dropped 30% quarter on quarter, amounting to $0.72 Billion. Tezos revenue, measured by total gas fees spent, decreased by 82% quarter on quarter. Hybrid optimistic/ZK rollup activation holds promise of further innovation and growth on the network.
Will XTZ Price Melt to $0.75 Level ?
The cryptocurrency price trades below 20,50,100 and 200-day exponential moving averages, suggesting strong bearish momentum. However, the chaikin money flow score witnessed a increase, rising from -0.19 to 0 mark indicating an increase in the involvement of bulls in the market.
Current score indicates that there is neither strength nor weakness in the price. The relative strength index has dropped below the 50 mark and read 42.90 at press time, suggesting rise in bearish momentum. The long/short ratio is 1.02 with 50.59% longs and 49.41% shorts indicating a slightly higher pressure from buying side.
Conclusion
XTZ price is consolidating on the smaller time frames. The market structure and price action of Tezos is bearish but traders should wait for the price to break below $0.79 before looking for selling bids.
Technical levels
Major support: $0.75 and $0.71
Major resistance: $0.845 and $0.91
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/13/tezos-price-prediction-xtz-price-falls-after-q2-report-release/