Tezos (XTZ) has weakened more than 25% since August 17, falling from a high of $2.03 to a low of $1.40. The current Tezos (XTZ) price stands at $1.45, which is more than 60% off from its 2022 highs registered in February.
But where will Tezos’s (XTZ) price go next, and what can we expect from September 2022? 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 got if trading with leverage.
The crypto market sentiment is still not only positive
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Tezos is an open-source platform for assets and applications, and the main characteristic of this platform are smart-contract safety, long-term upgradability, and open participation. The Tezos team held an initial coin offering (ICO) in July 2017, raising the equivalent of $232 million (66,000 BTC and 361,000 ETH), the largest ever ICO at the time.
Tezos allows anyone who owns its XTZ cryptocurrency to vote on possible changes to its rules, but it is also important to mention that Tezos blockchain can adopt new technological innovations without sacrificing community consensus.
Tezos has weakened more than 25% since August 17, and the risk of further decline for XTZ is not over. Multiple factors appear to be causing investors to distance themselves from Tezos. As usual, Tezos’ recent huge volatility is highly associated with the price of Bitcoin and with the U.S. stock market.
Bitcoin price weakened below $19,000 this Wednesday, which is its lowest level since July. However, today BTC is almost 11% stronger, trading around 21260 USD, but still is in a downtrend until breaking the 25 000 level again. The crypto market sentiment is still unable to show continuous positive signs, for several weeks in a row, which is connected with a decline in global stock markets and the U.S. dollar’s sustained strength.
The Fed continues to fight
The Fed continues to belatedly fight inflation by raising its key rate and conducting tight monetary policy in general. Cleveland Federal Reserve Bank President Loretta Mester said in a speech this Wednesday that it is too early to declare an inflation peak. Cleveland Federal Reserve Bank President Loretta Mester added:
“In my view, it is far too soon to conclude that inflation has peaked, let alone that it is on a sustainable downward path to 2 percent. As a result, the Fed needs to be steadfast in raising its target rate and holding it at a high rate, even if there are expected to be some bumps along the road”.
Federal Reserve Chair Jerome Powell also said that the Federal Open Market Committee would not pause its campaign to bring price growth down, and because of this, investors are worried that an aggressive interest rate could trigger another sell-off in the cryptocurrency market.
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Craig Erlam, a Senior Market Analyst at Oanda, said that the outlook for risk appetite in the near term is not looking good. AvaTrade’s Chief Market Analyst Naeem Aslam, warned about a narrowing of Bitcoin’s daily trading range, which gives us an indication that a massive capitulation is coming.
September is probably the least favorite month of the cryptocurrency market, as it historically brings nothing but losses to crypto holders. According to data provided by Cryptorank, Bitcoin and the cryptocurrency market have faced significant losses in September for the last five years. It is also important to mention that Bitcoin has seen only one positive September in its trading history on the market in 2016 and 2015.
Technical analysis for Tezos
Tezos (XTZ) has weakened from $2.03 to $1.40 since August 17, 2022, and the current price stands at $1.45. Tezos might have a hard time holding above the $1.40 level in the upcoming days, and a break below this level would indicate that XTZ could probably test the price level at $1.30.
On the chart below, I marked the trendline, and as long the price of Tezos is below this trendline, we can’t talk about a trend reversal, and the price of XTZ remains in the SELL-ZONE.
Main support & resistance levels for Tezos
On this chart (the period from February 2022), I marked the main support and resistance levels that can help traders to understand where the price could move. Tezos (XTZ) remains in the “bearish phase, “but if the price advances above $2, it would be a “buy” signal, and the next target could be located around $2.20. The current support level is $1.40, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $1.30. If the price drops below $1.30, the next target could be strong support located at $1.
What speaks for the rise in the Tezos price
Many surveys show that institutional investors still remain bearish on cryptocurrencies, and it is important to say that the bearish sentiment towards cryptocurrencies has not been relegated to just institutional investors alone. The spot markets are also feeling the heat as sell-offs have resumed, and in light of this, Tezos (XTZ) might have a hard time holding above the $1.40 level.
Tezos (XTZ) remains in the “bearish phase, “but if the price advances above $2, it would be a “buy” signal, and the next target could be located around $2.20. Traders should also consider that the price of Tezos is correlated with Bitcoin, and if the price of Bitcoin jumps above $22000, we can see XTZ at $1.60 or even $2.
What indicates further downfall for Tezos
Tezos has weakened more than 25% since August 17, and the risk of further decline for XTZ is not over. Multiple factors appear to be causing investors to distance themselves from Tezos. As usual, Tezos’ recent huge volatility is highly associated with the price of Bitcoin and with the U.S. stock market.
Bitcoin price weakened below $19,000 this Wednesday, which is its lowest level since July. The crypto market sentiment is still unable to show positive signs, which is connected with a decline in global stock markets and the U.S. dollar’s sustained strength.
Tezos price expectations from analysts and experts
The cryptocurrency market continues to be bearish, following a considerable lack of demand in the market and the macro event. Investors are worried that another aggressive interest rate hike from the U.S. central bank could trigger a massive sell-off, and in light of this, Tezos (XTZ) might have a hard time holding above the $1.40 level. Craig Erlam, a Senior Market Analyst at Oanda, said that the outlook for risk appetite in the near term is not looking good. AvaTrade’s Chief Market Analyst Naeem Aslam, warned about a narrowing of bitcoin’s daily trading range, which gives us an indication that a massive capitulation is coming.
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