Tezos (XTZ) has been in a positive mood for the last four days, advancing from a low of $0.63 to a high of $0.69.
But where is the price of Tezos (XTZ) going next, and what can we expect from the rest of September 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 Address governance and scalability issues on other networks
- 2 Tezos (XTZ) remains in a bear market
- 3 Technical analysis for Tezos (XTZ)
- 4 Important support & resistance levels for Tezos (XTZ)
- 5 What speaks for the rise in the Tezos (XTZ) price
- 6 What indicates further downfall for Tezos (XTZ)
- 7 What do analysts and experts say?
Address governance and scalability issues on other networks
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 is often referred to as a “self-amending blockchain” because it has a built-in mechanism for on-chain governance and protocol upgrades. Unlike Proof-of-Work blockchains like Bitcoin or Ethereum, Tezos’ Proof-of-Stake requires significantly less energy and cost to operate, and it is important to say that mechanisms of this platform ensure active community governance and participation–a key component of Web3.
As the Web3 movement gains in adoption, scaling responsibly requires a more energy-efficient approach, which positions Tezos as an ideal solution platform for building blockchain applications that are eco-friendly. It is also important to mention that Tezos is compatible with other blockchain networks and protocols, making it easier for developers to build cross-chain applications and for assets to move seamlessly between different blockchains.
The XTZ cryptocurrency plays a key role in maintaining and operating the Tezos network and can be used to interact with dApps, pay for fees, secure the network through staking, and provide a basic accounting unit on the Tezos platform.
Tezos also allows anyone who owns its XTZ cryptocurrency to participate in the decision-making process for protocol upgrades, which means that upgrades can be proposed, debated, and voted on directly by the Tezos community, reducing the likelihood of contentious hard forks.
Tezos (XTZ) remains in a bear market
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 $26,500 level again. However, not long ago, Tezos (XTZ) was trading above $1.40 ( February 2023), but since then, the price of XTZ has been decreasing, and despite the current jump, the price of this cryptocurrency remains in a bear market.
There has been a significant drop in the number of whale transactions for XTZ in the last several months, and when whales reduce their trading activity (transactions worth $100,000 and above), it usually indicates that they are losing confidence in the underlying coin’s short-term price prospects. If the Tezos whales continue to sell XTZ, the price of XTZ could take an even bigger hit in the upcoming weeks.
Benjamin Cowen, an analyst and founder of Into The Cryptoverse, thinks Bitcoin will likely maintain a downside trajectory by the end of September, and when the price of Bitcoin drops, that usually has a negative influence on the price of XTZ and on the rest of the cryptocurrency market. September has a reputation for being a historically weak month for stocks and riskier assets, and the September Effect is a supposed market anomaly whereby investment returns are relatively weak.
Tezos (XTZ) is highly volatile and remains a highly risky investment, but the wider dynamics of the cryptocurrency market also play an important role in determining the price of XTZ. The U.S. Securities and Exchange Commission (SEC) decisions, together with recession fears and aggressive monetary policy from major central banks, will continue to have a major influence on the cryptocurrency market in the weeks ahead.
Technical analysis for Tezos (XTZ)
Tezos (XTZ) has weakened from $1.48 to $0.63 since February 23, 2023, and the current price stands at $0.68. XTZ might have a hard time holding above the $0.65 level in the upcoming days, and a break below this level would indicate that XTZ could probably test the price level at $0.60. On the chart below, I marked the trendline, and as long the price of XTZ is below this trendline, we can’t talk about a trend reversal, and the price of XTZ remains in the SELL-ZONE.
Important support & resistance levels for Tezos (XTZ)
The beginning of the 2023 year has been successful for XTZ, but the price of XTZ has remained under pressure since February 23, 2023, and the risk of further decline is still not over. On this chart (the period from January 2023), I marked important support and resistance levels that can help traders understand where the price could move.
XTZ remains under pressure, but if the price advances above the resistance that stands at $0.80, the next target could be $0.90 or even an important resistance level at $1. The current support level is $0.60, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.55. If the price drops below $0.50, which represents a very important support level, the next target could be located around $0.40.
What speaks for the rise in the Tezos (XTZ) price
Tezos (XTZ) remains in a bear market, but if the price advances above the resistance that stands at $0.80, the next target could be $0.90 or even an important resistance level at $1. Tezos is a promising player in the blockchain space, with a robust ecosystem and a growing community of developers and users, but the regulations on the cryptocurrency market are also very important for the future of XTZ.
Expectations that the Fed will keep interest rates unchanged at its September 20 policy announcement stand at roughly 95%, and market participants will also closely monitor comments from Fed Chair Jerome Powell after the statement for clues on how long the hiking cycle may last. Any news that gives hope that the Fed is becoming less hawkish is viewed as a positive for cryptocurrencies, and XTZ could advance from the current price level if the Federal Reserve announces it’s done with rate hikes.
What indicates further downfall for Tezos (XTZ)
There has been a significant drop in the number of whale transactions for XTZ in the last several months, indicating that they are losing confidence in the underlying coin’s short-term price prospects. If the whales continue to reallocate funds to other investments, the price of XTZ could take an even bigger hit in the upcoming weeks.
The downfall of XTZ can also be influenced by a wide range of other factors, including market sentiment, regulatory developments, technological advancements, and macroeconomic trends. The price of XTZ is currently above $0.60 support, but a break below this level would indicate that XTZ could probably test the important support level that stands at $0.50.
What do analysts and experts say?
Crypto bulls seem to be feeling more confident this trading week; Bitcoin’s price hit levels above $26,500, which also positively influences Tezos (XTZ). However, despite the current jump, bears still control the price movement of XTZ, and many crypto analysts say that the fact that whales have lost interest in accumulating more XTZ indicates that we would continue to see low prices for XTZ. At the same time, the macroeconomic landscape remains uncertain; major central banks are still not done with bringing inflation down to their target, and risk-on assets such as cryptocurrencies could suffer in such conditions.
The U.S. central bank is widely seen keeping interest rates above the 5% range for a long time, and analysts are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. Stocks aren’t the only assets that could significantly lose their value, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall.
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.