Tezos (XTZ) has been in a positive mood since November 22, 2023, rising from $0.76 to a high of $0.93. The current price of XTZ stands at $0.91, and for now, bulls continue to control the price movement. This positive trend is also supported by Bitcoin’s ascent beyond $44,000 and its ambitious aim to reach $45,000 in the upcoming days or even hours.
It is also important to mention that stocks on Wall Street remain supported as further signs of a cooling jobs market reinforced bets that the Federal Reserve could start cutting interest rates early next year. Traders have nearly fully priced in the probability that the central bank will hold rates steady next week which is also positive for the cryptocurrencies which usually show a correlation with stocks on Wall Street.
But where is the price of Tezos (XTZ) going next, and what can we expect from the rest of December 2023?
Today, Crypto Lists will discuss Tezos (XTZ) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Tezos tackles governance and scalability challenges
- 2 Bitcoin’s price surge positively impacts XTZ
- 3 Wall Street remarks
- 4 Technical analysis for Tezos (XTZ)
- 5 Important support & resistance levels for Tezos (XTZ)
- 6 What speaks for the rise in the Tezos (XTZ) price
- 7 What indicates a downfall for Tezos (XTZ)
- 8 What do analysts and experts say?
Tezos tackles governance and scalability challenges
Tezos is an open-source platform for assets and applications, and the main characteristics of this platform are smart-contract safety, long-term upgradability, and open participation. Tezos was developed by Arthur Breitman and Kathleen Breitman and launched in 2018 to address some of the governance and scalability issues faced by other blockchain networks like Bitcoin and Ethereum.
Tezos frequently earns the moniker of a “self-amending blockchain” due to its inherent feature of having an integrated system for on-chain governance and protocol enhancements. In contrast to Proof-of-Work blockchains such as Bitcoin or Ethereum, Tezos’ Proof-of-Stake model necessitates notably lower energy consumption and expenses for operation. It’s crucial to note that the mechanisms within this platform guarantee active community governance and engagement, a fundamental element of Web3.
With the increasing adoption of the Web3, responsible scaling demands an energy-efficient approach, positioning Tezos as an optimal platform for constructing blockchain applications that prioritize eco-friendliness. A notable advantage is that Tezos exhibits compatibility with various blockchain networks and protocols, simplifying the process for developers to create cross-chain applications and facilitating smooth asset transfers between different blockchain platforms.
The XTZ cryptocurrency has a pivotal role in sustaining and operating the Tezos network. It serves multiple purposes, including interaction with decentralized applications (dApps), payment for fees, securing the network through staking, and serving as a fundamental accounting unit on the Tezos platform. Tezos extends the opportunity to individuals holding its XTZ cryptocurrency to engage in the protocol upgrade decision-making process. This approach enables proposals, discussions, and direct voting by the Tezos community, effectively minimizing the potential for divisive hard forks.
Bitcoin’s price surge positively impacts XTZ
Tezos (XTZ) has been advancing for the last several days, and as usual, Tezos’ current jump is highly associated with the price of Bitcoin, which managed to break through the $44,000 level this Tuesday. Numerous cryptocurrency analysts anticipate the U.S. Securities and Exchange Commission (SEC) to approve a Bitcoin ETF soon, and if this happens, the price of XTZ will likely ascend to higher levels.
The prospect of spot bitcoin ETFs receiving SEC approval has generated significant excitement within the crypto community mainly because the approval is expected to energize the cryptocurrency markets even more, drawing considerable institutional investments, especially from hedge funds. Crypto analysts expect many cryptocurrencies to experience substantial rallies from the current price levels, which could change the perspective of bearish traders and encourage them to join the bullish trend.
According to Bloomberg analyst James Seyffart, the probable period for potential approval of a spot bitcoin ETF appears to center around January 5 to January 10. However, investors should consider that it is still not sure if this will happen but what is sure is that the next deadlines for the SEC’s decision to approve, reject or delay applications from firms including BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity and Valkyrie fall in mid-January.
Wall Street remarks
Additionally noteworthy is the continued backing of stocks on Wall Street, driven by additional indications of a moderating jobs market that have strengthened speculations of an early interest rate reduction by the Federal Reserve in the upcoming year. Traders have almost entirely factored in the likelihood of the central bank maintaining steady interest rates next week, a situation that also bodes well for cryptocurrencies which usually show a correlation with stocks on Wall Street. Sam Stovall, chief investment strategist at CFRA Research in New York, said:
“As interest rates rise and as demand slows, companies are pulling back on job openings, which is essentially what the Fed wants. The Fed probably is done raising rates, and the only question outstanding is when they start to cut.”
In the weeks to come, XTZ and the cryptocurrency market will remain significantly influenced by the decisions of the U.S. Securities and Exchange Commission (SEC) together with Federal Reserve announcements, and investors should keep in mind that while positive developments can trigger substantial price increases, they also carry potential risks. Therefore, investing in cryptocurrencies should be approached with careful consideration. Conducting thorough research and assessing one’s risk tolerance are essential steps before making any investments in this space.
Technical analysis for Tezos (XTZ)
Tezos (XTZ) has advanced from $0.76 to $0.93 since November 22, 2023, and the current price stands at $0.91. Tezos’ current jump is highly associated with the price of Bitcoin, which managed to break through the $44,000 level again and as long the price of XTZ is above $0.85, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for Tezos (XTZ)
On this chart (the period from June 2023), I marked important support and resistance levels that can help traders understand where the price could move. According to technical analysis, bulls control the price movement of XTZ for now, and if the price advances above $0.95, the next target could be strong resistance that stands at $1. The important support level is $0.85, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to the next support that stands at $0.80.
What speaks for the rise in the Tezos (XTZ) price
The recent surge in Bitcoin’s value beyond $44,000 is bolstering both the cryptocurrency market and Tezos (XTZ). Numerous crypto analysts anticipate this upward trajectory to persist in the following weeks. There’s widespread anticipation among these analysts for the imminent approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). Should this approval materialize, it’s highly likely that the price of XTZ will experience further increases. Per technical analysis, the current price movement of XTZ is being driven by bullish sentiment. Should the price surpass $0.95, the subsequent significant resistance level at $1 might become the next target.
What indicates a downfall for Tezos (XTZ)
The downfall of XTZ can be influenced by a wide range of factors, including market sentiment, regulatory developments, technological advancements, and macroeconomic trends. Investing in Tezos (XTZ) involves a significant degree of unpredictability and substantial risk. While positive advancements have the potential to drive considerable price surges, they also come with associated risks. The price of XTZ is currently above $0.85 support, but a break below this level would indicate that XTZ could probably test the important support level that stands at $0.80.
What do analysts and experts say?
Crypto bulls seem to be feeling more confident last several days; Bitcoin’s price hit levels above $44,000 this Tuesday, which also positively influences Tezos (XTZ). The question now is whether this “bullish” phase could potentially instigate further gains and maybe a jump beyond the $1 mark again. Many crypto analysts say that more investors could purchase XTZ in the weeks ahead, and as long the price of XTZ is above $0.85, the price of this crypto remains in the BUY-ZONE.
Crypto analysts also say that the SEC approval for the first Bitcoin ETF in the U.S. would certainly positively influence the price of XTZ and according to Bloomberg analyst James Seyffart, the probable period for potential approval of a spot Bitcoin ETF could be around January 5 to January 10. Nevertheless, investors must bear in mind that Tezos (XTZ) poses a risk as an investment, with the potential for significant price fluctuations over brief durations, resulting in substantial gains or losses. Prior to investing in XTZ, it is crucial to conduct comprehensive research, comprehend the associated risks, and invest only an amount that you can afford to lose.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.