Tezos (XTZ) has been in a negative mood since March 14, 2024, falling from $1.72 to a low of $1.10. The current price of XTZ stands at $1.25, and for now, bears continue to control the price movement.
Tezos is a promising player in the blockchain space, with a robust ecosystem and a growing community of developers and users, but investors should be careful when considering investing in this cryptocurrency. So where is the price of Tezos (XTZ) going next, and what can we expect from the rest of April 2024?
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 address issues on other blockchain networks
- 2 Interact with dApps and more
- 3 The “bull run” on the cryptocurrency market could be near its end
- 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 further downfall for Tezos (XTZ)
- 8 What do analysts and experts say?
Tezos address issues on other blockchain 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. Positive information is 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.
Interact with dApps and more
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. Anyone who owns its XTZ cryptocurrency can participate in the decision-making process for protocol upgrades while Tezos also allows participants who own more than 6,000 Tez (XTZ) to become delegates, or “bakers”.
These “bakers” have the task of generating, signing, and releasing new blocks on the Tezos blockchain, as well as validating blocks generated by other “bakers”. Additionally, the network employs the Michelson programming language for developing smart contracts, which interact with the network’s cryptocurrency XTZ to execute transactions and cover gas fees.
The “bull run” on the cryptocurrency market could be near its end
The beginning of March 2024 has been very successful for XTZ, and the price of this crypto added approximately 40% to its value in the period from March 01 to March 16. Since then, the price of XTZ has lost significantly in value, and bears continue to control the price movement. Investors should keep in mind that Tezos (XTZ) is a risky investment, and history has shown many times that its price can fluctuate dramatically over short periods, leading to substantial gains or losses.
It’s essential to conduct thorough research, understand the risks, and only invest what you can afford to lose when considering investing in XTZ. Negative information is that some crypto analysts think that the “bull run” on the cryptocurrency market could be near its end.
One of them is Marathon Digital CEO Fred Thiel who said in a recent interview with Bloomberg that the price impact of the upcoming Bitcoin Halving event is already factored into the market to a certain extent and that he does not expect big price movements. Marathon Digital CEO Fred Thiel added:
“The ETF approval, which has been a huge success, has attracted capital into the market and essentially brought forward what could have been the price appreciation we typically would have seen three to six months post-halving. So I think we are seeing part of that now already and that has put forward some of the demand.”
Some even more skeptical analysts think that Bitcoin could experience a downside trajectory in the upcoming weeks, 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. At the same time, economists are warning that many central banks (especially the Fed) could hold interest rates at restrictive levels for longer, and because of this, they expect a recession that could hit financial markets.
Technical analysis for Tezos (XTZ)
Tezos (XTZ) has weakened from $1.72 to $1.10 since March 14, 2024, and the current price stands at $1.25. XTZ might have a hard time holding above the $1.20 level in the upcoming days, and a break below this level would indicate that XTZ could probably test again the price level at $1.10.
Important support & resistance levels for Tezos (XTZ)
The beginning of March 2024 year has been successful for XTZ, but the price of XTZ has remained under pressure since March 14 and the risk of further decline is still not over. On this chart (the period from November 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 $1.40, the next target could be $1.50 or even an important resistance level at $1.60. The current support level is $1.20, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $1.10. If the price drops below $1, which represents a very important support level, the next target could be located around $0.80.
What speaks for the rise in the Tezos (XTZ) price
Tezos (XTZ) remains under pressure despite a little retrace, but if the price advances above the resistance that stands at $1.40, the next target could be $1.50 or even an important resistance level at $1.60. The overall sentiment on the cryptocurrency market plays a very important role in XTZ’s price trajectory, and if investors regain confidence further, an upside potential could benefit XTZ.
Tezos is a promising player in the blockchain space, with a robust ecosystem and a growing community of developers and users, but everybody should conduct thorough research, understand the risks, and only invest what they can afford to lose when considering investing in XTZ.
What indicates further downfall for Tezos (XTZ)
There has been a significant drop in the number of whale transactions for XTZ in the last three weeks, 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 $1.20 support, but a break below this level would indicate that XTZ could test the important support level that stands at $1.
What do analysts and experts say?
Despite the minor 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. Some crypto analysts think that the “bull run” on the cryptocurrency market could be near its end which is also bad for XTZ and according to Marathon Digital CEO Fred Thiel, the price impact of the upcoming Bitcoin Halving event is already factored into the market.
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 longer time period, and some 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.
