Tezos (XTZ) Testing Support Level With a Wider Negative Stance!
Tezos was founded in 2014 by Arthur Brightman and Kathleen Brightman. As per Arthur, when one of the first altcoins was made public in 2011, most BTC lovers thought that Bitcoin would take its competitors’ best features to remain the king of the crypto world.
After a few years, Arthur made Tezos the complete opposite of what he saw in the BTC community during that time. The Tezos Foundation intended to buy Dynamic Ledger solutions after the ICO to transfer ownership of the Tezos code.
Since Tezos mainnet launch was subsequently delayed to September 2018, A Tezos validator is known as a baker. They have over 370 live bakers making Tezos blocks. Tezos governance proposal comprises five phases: where the first phase is Proposals, the second phase is Exploration, the third phase is Testing, the fourth one is Promotion, and the last one is Adoption.
There have been close to eight amendments, the most recent being the Hangzhou in December 2021. It focused on increasing smart contract interoperability, reducing gas fees, improving blockchain storage, with increasing liquidity.
XTZ is the native coin of Tezos. XTZ is used for governance and staking and as a payment method for transaction fees. It has a circulating supply of 900,371,681.40 with a market capitalization of $1,324,127,904.
Tezos outlook remains clearly negative since facing the first leg of profit booking in Mid-October 2021. Technicals are deteriorating, and only time can provide a clear outlook on the future upside prospects of the XTZ token. However, you can read our Tezos prediction to get a clear idea of the coin and its future projections.
XTZ token has stumbled twice as enthusiasts hope for the revival of its positive sentiment. The small buying jump witnessed from its recently touched low of $1.2 creates a spiraled price trend that could further head back to test the support at $1.2.
Tezos price action and its strength sentiment are not accurate syncs creating trap situations for buyers hoping to make a quick buck. RSI has been moving close to the neutral territory with spiked-up transactional volumes. The MACD indicator hasn’t yet generated the bearish crossover indicating some more upside potential in the current momentum.
Breaching $1.18 on the downside would be an explosive repetition of XTZ’s previous price trend while breaching the $2.7 level on the upside could aid XTZ in testing the 50 DMA curve. Consolidation and buying sentiment would be required above the 50 DMA curve to continue with bullish momentum. Failure of the same could result in a free fall of its token value.
Hourly charts have created huge negative candles in the last three hours. The increasing negative sentiment in the short term can destroy any upside potential even for the shorter duration.
Before this breach, the XTZ token was concisely on an uptrend for the last 4 days with little to no volatility. On longer-term price analysis, only the price action above $2.2 would provide a clear bullish outlook.
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