Tezos (XTZ) has weakened from $1.19 to $0.95 since April 16, 2023, and the current price stands at $1.03. However, crypto bulls seem to be feeling more confident this Thursday as renewed concerns for the banking sector brought back optimism for the cryptocurrency market.
But where will Tezos’s (XTZ) price go next, and what can we expect from May 2023? Today, Stanko from Crypto Lists will discuss Tezos’ (XTZ) price estimate 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 had teamed up with Google Cloud
- 2 First Republic Bank announced a major slump in deposits
- 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 the downfall of Tezos (XTZ)
- 7 What do analysts and experts say?
Tezos had teamed up with Google Cloud
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. 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 Google’s cloud computing arm has recently added another string to its Web3 bow, with a new partnership to see it becoming a network validator on the Tezos blockchain.
The Tezos Foundation reported that this partnership would also make it possible for companies and developers to host and deploy RPC (Remote Procedure Call) nodes for Web3 applications using the Tezos blockchain and Google Cloud infrastructure.
“The Tezos Foundation will provide new and existing Google Cloud customers access to its corporate baking program. Through the program, Tezos will offer Google Cloud customers that are interested in building Web3 applications, easy deployment of nodes and indexers on the Tezos protocol.”
– The Tezos Foundation
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 vote on possible changes to its rules, but it is also important to mention that Tezos can adopt new technological innovations without sacrificing community consensus.
First Republic Bank announced a major slump in deposits
Tezos (XTZ) is advancing this Thursday, and as usual, Tezos’ current jump is highly associated with the price of Bitcoin, which managed to break through the $29,500 level again. Since the beginning of the week, shares in First Republic Bank have further plummeted by 60%, and renewed concerns for the banking sector brought back optimism for the cryptocurrency market.
First Republic Bank announced a major slump in deposits and more than $100bn of outflows in the first quarter, and as a result, investor interest in hedge assets like cryptocurrencies increased on fears that the instability could continue.
Things are looking positive for now, but some analysts, including those at Morgan Stanley, have warned that we could see again selling pressure on the cryptocurrency market.
Supply: 922,149,978
Release date: July 1, 2017
Description: Buy Tezos, the coin that sponsors the Manchester United training kit!
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According to Morgan Stanley, global growth this year is expected to decelerate, which could put pressure on financial markets, while the famous investor Jeremy Grantham warns another epic bubble in financial markets is bursting, and the turmoil that swept through the banking sector is just the beginning.
According to Jeremy Grantham, the U.S. stock market could experience significant losses over the coming months, and the best we can hope for is a fall of about 27% from current levels, while the worst-case scenario would see a plunge of more than 50%.
The crypto market displayed a high correlation with U.S. equities, and if a downtrend is witnessed in the stock market, the same is usually replicated in the crypto-sphere as well. Wells Fargo analysts said that they expect to see a 10% correction on the U.S. stock market, and the highly volatile nature of the cryptocurrencies may scare investors again to sell Tezos (XTZ) if a dip happens in the cryptocurrency market.
Technical analysis for Tezos (XTZ)
Tezos (XTZ) is advancing after renewed concerns for the banking sector brought back optimism among crypto traders, and as long the price of XTZ is above $1, there is no risk of a bigger sell-off.
Despite this, investors should continue to take a defensive investment approach in the upcoming weeks, especially because the cryptocurrency market remains extremely volatile, making it difficult to predict accurately what a coin’s price will be in a few hours and even harder to come up with a long-term target price.
Important support & resistance levels for Tezos (XTZ)
On this chart (the period from August 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Tezos (XTZ) has recovered from its recent lows, and if the price jumps above $1.10, the next target could be resistance at $1.20.
The current support level is $1, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.95. If the price drops below $0.90, the next target could be strong support that stands at $0.80.
What speaks for the rise in the Tezos (XTZ) price
Fragility in the U.S. banking system encouraged investors’ interest in hedge assets like cryptocurrencies; the price of Bitcoin rose again above $29,500 and this situation also positively influenced the price of Tezos (XTZ). The amount of XTZ traded over the last several hours saw a significant increase, and if the price of XTZ jumps above $1.10, the next target could be resistance at $1.20.
Traders should also consider that the price of Tezos (XTZ) is correlated with Bitcoin, and if the price of Bitcoin jumps again above $30000, we can see this cryptocurrency at a higher price level than the current price.
What indicates the downfall of Tezos (XTZ)
Investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain, reflecting synchronous policy tightening aimed at containing very high inflation, worsening financial conditions, and continued disruptions from Russia’s invasion of Ukraine.
The current support level for XTZ stands at $1, and if the price falls below this level, the next target could be $0.95. The price of XTZ is also correlated with the price of Bitcoin, and if the price of Bitcoin drops again below the $28000 price level, that would certainly have a negative influence on the price of XTZ.
What do analysts and experts say?
Tezos (XTZ) is advancing after renewed concerns for the banking sector brought back optimism among crypto traders, but investors should keep in mind that the risk of another sell-off still persists.
According to Morgan Stanley, global growth this year is expected to decelerate, which could put pressure on financial markets, while the famous investor Jeremy Grantham warns another epic bubble in financial markets is bursting, and the turmoil that swept through the banking sector is just the beginning.
Ki Young Ju, the CEO of the cryptocurrency analytical service CryptoQuant.com, said that macro risks and contagion still prevail in the crypto industry, and the rising risks of further liquidations, bankruptcies, etc., could lead again to a spike in selling pressure.
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.
