With a massive 45% run in just one week, XTZ has become a shining cryptocurrency for investors who are considering it as the next big thing in the crypto world. The Tezos cryptocurrency currently has a market cap of $4.8 billion and is ranked 30th among the top cryptocurrencies.
Solana is the only other cryptocurrency with similar strong price momentum and increased volume, which has paved the way for Tezos to become one of the top cryptocurrency technologies in the coming years.
Tezos tackles the issue of protocol development with major cryptocurrencies such as Bitcoin and Ethereum by self-modifying voting systems to modify their protocols. This is done using a traditional voting method that allows holders of XTZ to accept changes and modify the blockchain based on a complex process to change the protocol.
XTZ aims to run a permissionless transactional network using smart contracts. It can facilitate up to 40 transactions per second. Since the Grenada upgrade, the block transaction speed has been reduced to 30 seconds. Investor confidence in XTZ’s ability to create a truly decentralized cryptocurrency blockchain network without the risk of forks is something that could propel this crypto even further.
Tezos Price Analysis
With outperformance and increased trading volumes on major trading platforms like Binance, XTZ has created a huge history. During the past week, the volume on XTZ has exceeded the volume on different days by five to ten times over the past two months.
XTZ took a major breakout from its 200 DMA, which has now turned into a strong support. The 200 DMA is currently active at the $4.14 level. While other cryptocurrencies are going through periods of profit booking or resistance, XTZ has made it clear that no resistance will be able to stop its momentum. The risk of reward at current price levels favors buyers, as there is a 30% downside risk to strong demand and buy levels.
If buying sentiment on XTZ maintains this increased traction, on the upside, buyers could earn up to 50% in the next month. If XTZ sustains the consolidation and holds the level, the immediate resistance at the $5.65 level will convert into a support level.
The all-time high of $8.41 seems to be attainable from the current levels as it is well within reach. The biggest indicator in favor of upside movement is increased volumes and higher buy action seen from the RSI indicator which is trading in an overbought zone above the 80 level on the histogram.
From a longer and broader perspective, XTZ could be preparing to enter the big leagues. It will jump into the elite 20 cryptocurrencies once it manages to close above the $11 level, and the price jump from current levels will put it in the spotlight, opening up room for more investor interest.
Looking at the hourly volumes since August 23, XTZ has seen a significant change. This sudden increase in volume indicates more investor interest in this cryptocurrency. Each swing is taking Tezos to new highs on the hourly chart as well, and one can easily enter at swing lows and sell at swing intersections for stable intraday profits.
based on our Tezos price predictionInvestors should hold this cryptocurrency because of its uniqueness. As long as the MACD has a more significant portion on the positive axis, it will indicate a positive move for XTZ. Nevertheless, if this pattern changes, one should become cautious about his position and secure his investment.
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