Tackling Governance and Scalability Challenges in Other Networks
Tezos is an open-source platform for assets and applications, offering key features such as smart contract security, long-term upgradeability, and open participation. Developed by Arthur and Kathleen Breitman, Tezos launched in 2018 to address scalability and governance concerns found in other blockchain networks like Bitcoin and Ethereum.
Tezos is often described as a “self-amending blockchain” due to its built-in mechanism for on-chain governance and protocol upgrades. Unlike Proof-of-Work blockchains like Bitcoin or Ethereum, Tezos uses Proof-of-Stake, which operates at a much lower cost and energy requirement. The platform’s mechanisms ensure active community involvement and governance—a vital component of Web3.
As the Web3 movement gains traction, Tezos’ energy-efficient approach makes it an ideal platform for eco-friendly blockchain applications. Furthermore, Tezos’ compatibility with other blockchain networks and protocols facilitates the creation of cross-chain applications and smooth asset transfers across blockchains.
The XTZ cryptocurrency plays a pivotal role in maintaining and operating the Tezos network. It is used to interact with dApps, pay for transaction fees, secure the network through staking, and serves as the fundamental unit of accounting within the Tezos ecosystem.
Tezos also empowers its XTZ holders to participate directly in governance decisions regarding protocol upgrades, minimizing the chances of contentious hard forks.
Tezos (XTZ) has seen some recent gains, largely influenced by the price movement of Bitcoin, which managed to break through the $26,500 mark again. However, despite this brief rally, Tezos was previously trading above $1.40 in February 2023. Since then, the price of XTZ has steadily declined, and despite recent advances, it remains firmly within a bear market.
A significant drop in whale transactions involving XTZ has been observed in recent months. When whales reduce their activity (transactions over $100,000), it typically signals a lack of confidence in the short-term price prospects of the coin. If this trend continues and whales keep selling XTZ, it could lead to a further price decrease in the coming weeks.
Benjamin Cowen, an analyst and founder of Into The Cryptoverse, believes that Bitcoin will likely experience further downward pressure by the end of September, which would negatively affect XTZ and other cryptocurrencies. September has historically been a weak month for stocks and riskier assets, and the “September Effect” could amplify this pattern.
Tezos (XTZ) remains highly volatile and risky, with broader cryptocurrency market trends influencing its price trajectory. Key factors such as the U.S. Securities and Exchange Commission’s (SEC) decisions, recession concerns, and aggressive monetary policies from central banks will continue to shape the future of XTZ.
Teknisk analys för Tezos (XTZ)
Tezos (XTZ) has dropped from $1.48 to $0.63 since February 23, 2023, with the current price standing at $0.68. The price of XTZ might struggle to hold above the $0.65 mark in the coming days, and a break below this level could signal a potential test of the $0.60 price level. The chart below highlights the trendline, and as long as the price remains below this trendline, we cannot expect a trend reversal, and the price of XTZ remains in the SELL-ZONE.
Viktiga stöd- och motståndsnivåer för Tezos (XTZ)
Although the beginning of 2023 was promising for XTZ, the price has faced consistent pressure since February 23, 2023, and the risk of further declines is still present. The chart from early 2023 marks important support and resistance levels that traders can use to gauge future price movement.
XTZ remains under pressure, but if the price exceeds the resistance level of $0.80, the next target could be $0.90 or even $1. The current support level is at $0.60, and if the price breaks this level, it will signal a “SELL,” with the potential to move towards $0.55. If XTZ drops below $0.50, a significant support level, the next target may be around $0.40.
Factors That Favor an Increase in Tezos (XTZ) Price
Tezos (XTZ) remains in a bear market, but if the price breaks above the $0.80 resistance, the next targets could be $0.90 or even $1. Tezos is a strong player in the blockchain space with a growing ecosystem and developer community. However, cryptocurrency regulations play a crucial role in XTZ’s future price development.
The expectation is that the Federal Reserve will keep interest rates unchanged at the September 20 policy meeting, with market participants closely monitoring comments from Fed Chair Jerome Powell regarding the future of interest rate hikes. Any indication that the Fed may pause its rate hikes would be positive for cryptocurrencies, potentially boosting XTZ’s price from its current levels.
Factors Suggesting a Decline in Tezos (XTZ) Price
The decline in whale transactions for XTZ in recent months suggests a lack of confidence in the short-term prospects of the coin. If this trend continues, XTZ’s price could face further drops in the coming weeks.
The downfall of XTZ could also be influenced by various factors, including market sentiment, regulatory shifts, technological developments, and macroeconomic trends. Currently, XTZ is holding above the $0.60 support, but a break below this could signal further downside towards the critical support at $0.50.
What Do Experts and Analysts Say?
Crypto enthusiasts are feeling more optimistic this week, with Bitcoin’s price rising above $26,500, which has had a positive impact on Tezos (XTZ). However, despite this recent rally, bearish sentiment still controls the price movement of XTZ, as many analysts note that the lack of whale interest in accumulating XTZ signals continued low prices. Furthermore, the macroeconomic landscape remains uncertain, with central banks’ actions likely to impact the broader market.
With the U.S. Federal Reserve expected to maintain interest rates above 5%, analysts are concerned that aggressive monetary policies may trigger a recession, potentially harming both the stock market and cryptocurrencies. Investors should be aware that cryptocurrencies, like XTZ, could face even more significant price declines in such an environment.
Villkor: Cryptocurrencies are highly volatile and may not be suitable for all investors. Never invest more than you can afford to lose. The information provided here is for educational purposes only and should not be construed as investment or financial advice.
