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Tezos Price Prediction: Will XTZ go up?

By:
Mohadesa Najumi
Updated: Jul 5, 2022, 13:17 UTC

XTZ has been stuck in a downward trend over the last few months despite a brief rally in April

Cryptocurrency coins

Key Insights:

  • XTZ plummeted to $1.20 after Celsius announced that it was pausing all withdrawals and transfers for customers. 
  • The token rose to a four-week high of $2.23 on June 9.
  • XTZ is currently down 80% from its all-time high of $9.18 set in October 2021.

XTZ, the native cryptocurrency of the Tezos blockchain, rose at the start of last month to a four-week high of $2.23 on June 9. In fact, it had risen 12% in the seven days prior to this.

This price action followed an announcement from Tether that USDT, the industry’s newest stablecoin, would be launching on the Tezos blockchain.

Tezos is an open source platform that enables developers to create decentralised applications (dApps). More specifically, it uses a variation on classic proof-of-stake (PoS) consensus called liquid proof-of-stake (LPoS) to give developers the opportunity to run custom programming logic and design new programs meant to replicate products and services.

XTZ is used to secure the network via staking and it gives users ability to vote on network upgrades. Each vote is proportional to the amount of cryptocurrency they bake and bakers receive small percentages of the rewards allocated to those who delegate their XTZ.

Price Action

XTZ has been stuck in an overall downtrend since November last year, with the bearish trend set to continue this week. It had closed 2021 at $4.35, falling further to $3.49 by the end of January this year.

Bullish market conditions saw XTZ rise briefly to $4.12 on April 2 this year, but following a ban by the Chinese government preventing financial institutions and payment companies from providing services related to cryptocurrency transactions, its price plummeted to $2.85 by April 21, wiping out over 30% of its value in just 19 days.

Things worsened this month when crypto lender Celsius announced that it was pausing all withdrawals and transfers for customers, leading XTZ to fall dramatically to $1.20.

The token has been trading between a support floor and a resistance barrier since mid-June. However, XTZ recorded an 11% price increase on June 28.

 

XTZ weekly price chart
XTZ 050722 Weekly Price Chart

During that same month, its price had risen from lows of $0.195 to $1.61 on June 29 – a 34% increase. Yet, the coin was still down 22% during the month.

XTZ, which is down over 80% from its all-time high of $9.18 set in October 2021, started this month with a decline through a falling wedge pattern. It is currently trading at $1.47 and ranks 36th in the list of cryptocurrencies worldwide by market capitalization at $1.3 billion. Its price is down over 1% in the last 24 hours.

 

XTZ daily price chart
XTZ 050722 Daily Price Chart

Technical Indicators

A break out above $1.62 would signal a recovery for XTZ, while a close below $1.33 would invalidate this possibility.

Technical analysis shows that short-term sentiment on XTZ is bearish, with 4 indicators displaying bullish signals compared to 25 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving mostly sell signals, while the relative strength index (RSI) stands at 45.6.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of a Tezos crypto price prediction, XTZ could see its price rising to $1.715 by August 2022, reaching $1.299 in January 2024 and falling to $0.839 by January 2025.

About the Author

Mohadesa Najumi is a British writer who has worked within crypto, forex, financial technology, and the stock market industry. Mohadesa received her MSc in Political Science and International Relations at the University of Amsterdam.

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