After a long awaited mainnet launch and it's first on-chain governance protocol set to activate later today, Tezos ($XTZ) proves to be a contender as one of the top performing alts of the next crypto bull market. Because of it's relatively short trading history and daily volume it's price remains volatile at best, but there are several TA and FA indicators that show promise in the near-term future. For these reasons we will utilize indicators on a larger timeframe using Fibonacci levels from it's ATL to ATH.
Fundamental analysis is a key factor in identifying market trends for coins like Tezos. Several announcements have created positive sentiment towards the self-amending crypto ledger, including, but not limited to:
Fundamental analysis is a key factor in identifying market trends for coins like Tezos. Several announcements have created positive sentiment towards the self-amending crypto ledger, including, but not limited to:
- Athens A - a historic moment in the cryptoverse where its first on-chain governance protocol has surpassed both supermajority and quorum requirements to amend the blockchain with a consensus to adopt it. The proposal will both benefit current bakers and encourage new bakers to enter the ecosystem by lowering the barrier to entry. The amendment to the mainnet is scheduled to take effect later today.
- Staking/Baking - there has been a significant amount of interest in mediums of passive income within cryptocurrency. Tezos is one of the leaders in the space, making it easy for anyone holding stake (coins) to either bake blocks themselves or delegate to a baker. Both options incentivize token holders to accumulate Tezos in an effort to provide passive (and compounded) interest simply by holding their tokens.
- Baking Services - New bakers are being added to the network at a rapid rate. This provides a multitude of benefits including market competition (keeping service fees low and encouraging high-quality service to delegators). This has gained enough traction within the community that large companies like Coinbase have announced staking services for institutional investors. CB has been actively communicating their progress and roadmaps for ensuring a safe and compliant scaling and have consistently pointed to Tezos as a "token" example of their success thus far.
From a technical standpoint, the following indicators are proving bullish for $XTZ:
- The 0.236 Fib level ($1.56) has proved a solid support level for the price since it broke as resistance ~2 weeks ago
- Since reaching its USD ATH on Kraken, it has painted a nice bull flag on the daily chart consolidating at the 0.236 Fib level
- The Stoch RSI indicator is nearly bottomed out and nearing a cross into bullish territory
- OBV has sustained an upward trend and the trendline remains intact after the most recent bleed out in price
And now for price targets...
In the event of a bull case scenario, there are several key levels to watch for:
Local resistances at $1.67 and $1.80
All-time high resistance at $1.94
Once the ATH resistance has been broken we will enter the price discovery phase - it is reasonable that $2.00 will become the new support once broken and we will revisit this chart once settled.