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Tezos Approaches The ‘Mumbai Upgrade’, What’s Next For XTZ?

Tezos (XTZ) network is readying itself for its latest upgrade, called the ‘Mumbai Upgrade.’ On January 17, Nomadic Labs, which is a blockchain developer within the Tezos community, mentioned the Tezos protocol proposal, Mumbai, which is headed toward the implementation process.

This will be the 13th upgrade made to the Tezos network. This upgrade will implement various new features. The main features include transfer tickets between accounts and a much shorter block time of 15 seconds.

Further, this upgrade will add Epoxy, a new technology on Mainnet, which is precisely a validity rollup that can also be referred to as a new layer 2 scaling solution.

The Mainnet will gain further strength due to Epoxy, which introduces SNARKs’ proof-of-validity, which will be the reason for quicker transactions.

This 13th upgrade, which is called the ‘Mumbai Upgrade’ will be implemented after a number of tests are carried out. However, once implemented, the system will get closer to Tezos’ target of achieving one million transactions per second, according to the Nomadic Lab’s report.

The implementation of the upgrade will, as a consequence, increase the value of Tezos’ native token XTZ. The price of the altcoin, XTZ, has reacted positively to this development. XTZ experienced a price reversal, but the altcoin has since resumed its bullish momentum.

Tezos Price Analysis: One-Day Chart

Tezos

XTZ was trading at $0.99 at the time of writing. Although the coin started to retrace over the 48 hours, it has regained bullish momentum on the chart. The altcoin has formed a prominent cup-and-handle trading pattern, which is an extension of bullish momentum.

This change in price momentum can be attributed to the announcement of the ‘Mumbai Upgrade’. Immediate resistance to XTZ stands at $1.02, but the coin is expected to retrace to $0.97.

Once it reaches the $0.97 mark, Tezos can target $1.19, which will mean an 18% appreciation. Over the last week, the coin managed to surge over 8%. The amount of XTZ traded in the last session increased, signifying an increased amount of buying.

Technical Analysis

Tezos

XTZ had secured a multi-month high with regard to the buying pressure it witnessed. The Relative Strength Index (RSI) touched the 80 mark a few trading sessions ago, signifying an overvalued tendency.

Often, a coin that is overbought experiences a price correction and a fall in demand; Tezos also displayed the same, but at press time, the RSI again noted an uptick.

This uptick could mean that the altcoin might head back close to the 80-mark. This unusual uptick can be because of the newest development.

On the same note, XTZ rose above the 20-Simple Moving Average (SMA), which indicated that buyers were driving the price momentum.

The coin was above the 50-SMA (yellow) line too. So with increased accumulation, XTZ can soon breach the 200-SMA (green) line.

Overall, Tezos remains quite optimistic on the chart; however, the coin has to remain above its local support line of $0.97 for the uptrend to continue.

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This Expert Claims Crypto Winter Is Not Over But There’s A Catch

The ongoing crypto bear market seems like an unending journey, with more firms coming down with financial crises due to asset devaluations and other effects. Although some assets have seen brief rallies, many remain in decline.

Regarding the crypto bear effects, Kathleen Breitman, CEO of Tezos, a blockchain platform, shared her opinion. Breitman thinks the end of the crypto winter is not near yet, but she is confident about the survival of a few useful crypto applications.

Reasons For Price Devaluations

The Tezos CEO argued that the recent rallies do not signify the end of the bear market. In her opinion, easy money from venture capitalists seeking profit and low-interest rates artificially hiked the valuations of many crypto companies.

Kathleen further said that even if the Feds stop hiking interest rates, only a few useful crypto applications that can grow organic users will survive.

The CEO also commented on the fall in the price of many digital assets in 2022. She said easy money going into the system inflated the values of digital assets. She cited examples of crypto devaluation in the industry using the OpenSea NFT marketplace as a case study.

According to data from Dune Analytics, OpenSea’s trading volume dropped from ~$3 billion in September 2021 to less than $350 million in September 2022. Kathleen explained that the cheap money phenomenon started and spread into many markets. She said OpenSea has a $13 billion valuation currently.

Other top industry players gave their opinions regarding the end of the bear market. Charles Hoskinson, founder of Cardano, Brett Harrison, ex-president of FTX US, and Brain Amstrong, CEO of Coinbase, predicted when the bear market would end.

Only Useful Crypto Applications Can Survive Bear Market, Breitman

According to the Tezos CEO, since the easy money is unavailable, get the communities (organic users). When asked if a pause in Fed’s rates hikes could revive the crypto market, Breitman said there would still be a shift in crypto and tech valuations. She said that the valuations would base on user growth and not the use of cheap tactics (easy money) that quickly goes.

Furthermore, Breitman said no metric had evaluated cryptocurrency or technology in the last ten years when interest rates were low. However, she maintained that practical crypto applications would thrive no matter the challenges.

As per Breitman, the demand for digital arts and their trading on blockchain was the driving factor for Tezos’ increased popularity in 2021. According to Breitman, the use case of blockchain in creating and trading digital arts is among the only sources of organic growth in the crypto industry.

Amid the crypto winter, the end of the easy money era has been a hot topic among analysts. Some believe the recent Bitcoin price stability is good for the industry. The founder of Nexo, a crypto lending firm, told reporters that BTC performance strongly indicates that the digital asset market has matured.

This Expert Claims Crypto Winter Is Not Over But There's A Catch

BTC falls below the $20,000 barrier l Source: BTCUSDT on Tradingview.com
featured Image from Pixabay | Charts by TradingView

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Tezos (XTZ) Price Movement Indicates Looming Price Drop

Tezos seems to be heading south. As of this writing, XTZ trades at $1.61 following a 3.10% boost in price seen overnight.

XTZ’s relative strength index and volume have declined and isn’t showing any signs of bullish movement.

As of press time, XTZ movement ceases to be dubbed as an impulse wave. This means that Tezos is now moving towards a back slide.

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Tezos Hints At Bearish Movement

The bearish streak has been obvious in Tezos price last week with early signs that the coin’s price will have the tendency to break through the ascending trendline.

Tezos breaches the support line on July 26. Currently, the price reveals an intra-hour upturn following increased trading activity. XTZ volume is still relative low plus the RSI isn’t giving away any bullish hints.

Meanwhile, the bearish thesis will only be dismissed once XTZ price breaches the above $1.61. So, if the bulls’ impetus forcibly pushes the Tezos price over this zone, then that’s the only time the price can shoot to a high of $1.65; which is roughly a 7% jump from its current price.

To date, XTZ is trading around $1.60 following a 3.10% pump in price seen overnight. Even though XTZ price has soared today, Tezos has still declined by 10.75% in the past few days.  

Current CoinMarketCap data reveals that XTZ remains to be the 37th largest cryptocurrency in terms of market capitalization or just ahead of HBAR that happens to be in the 38th place and behind SAND, currently in the 36th place.

More so, the 24-hour trading volume outlook for XTZ still shows a drop of 30.94% or $42,498,623.

XTZ total market cap at $1.47 billion on the daily chart | Source: TradingView.com
XTZ Price Bound For A Major Retreat

XTZ Price is bound for a shrill drop targeting $1.19. A sharp correction is on the horizon. Tezos has been very consistent with showing its bearish junction since the last trading week of this month.

XTZ has failed to hold it at the $1.62 due to very low buying pressure. So, if the coin price closes below $1.50, it will target $1.55 next.

XTZ price is seen to frame itself into a Flag and Pole pattern which is inherently bearish. The coins is seen to be fortifying close towards the $.70 resistance level.

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Moreover, the XTZ price drifts under the 50-day EMA or Exponential Moving Average at $1.67. Additionally, the drop in volume as the price pumps up serves as a warning for the bulls. It has been tested time and again that the formation of Flag and Pole pattern usually hints a sharp drop.

On the hourly charts, XTZ price has found a support close to $1.56. It formed the Bat pattern which is bullish and points to a short-term inversion apparent on the higher side. With that being said, the anticipated upside target will be at $1.65 and then $1.70 next.

On the flip side, a slight shift in the bearish movement would mean the target will be at $1.55.

Featured image from Unsplash, chart from TradingView.com

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Tezos (XTZ) Nears 3-Week High – Can Bulls Barrel Towards $1.80?

After a sharp decline in the second week of June, the price of Tezos (XTZ) rebounded from its $1.2 low. Tuesday, despite a highly volatile market, the altcoin price reached a new all-time high, rising slowly but steadily.

XTZ was a prominent performer to usher in the week, as prices surged to a three-week high. Following Monday’s session low of $1.50, XTZ climbed to an intraday high of $1.60 yesterday.

As of the time of writing, XTZ was trading at $1.54, an increase of 6.0 percent over the previous week. This increase in price caused the token to collide with a significant resistance level at $1.67, and gains have subsequently retreated.

Suggested Reading | Crypto Community Remains Upbeat On XRP, Despite Bearish Market Conditions

Tezos (XTZ) On Steady Upswing

Moreover, the continuing surge was maintained when the price of XTZ gained a steady footing at $1.32. The upswing pushed the altcoin 27 percent higher as it breached the previous swing resistance at $1.65.

A continuous decline over the past eight months pushed XTZ to a January-March 2020 support level of $1.2, representing a loss of 85 percent. However, on June 19, the altcoin soon rebounded.

The positive turnaround pushed the XTZ price 33 percent higher to $1.62, where it encountered strong resistance. Nonetheless, over the previous four days, the price rejection at the indicated level has increased, indicating that sellers are defending this level.

XTZ Outperform The Major Cryptos

The cryptocurrency market continued to decline on Monday, following a weekend of losses.  According to TradingView.com, the worldwide cryptocurrency market cap is $884 billion, a decline of 2.1% from the previous day.

Bitcoin, the most valuable cryptocurrency by market capitalization, fell for a third day, falling below $20,000 to $19,910 after registering its largest weekly increase since March. Ether, the second-largest cryptocurrency by market capitalization, is currently trading at $1,078 and is down nearly 2% for the day.

XTZ total market cap at $1.39 billion on the daily chart | Source: TradingView.com

Despite an 80 percent drop from its all-time high of $9.18 in October of last year, XTZ has been on an upward trend since last Friday.

On Thursday, Tezos unveiled a developer portal to aid in the creation of decentralized applications on its blockchain.

Suggested Reading | Quant (QNT) Registers Gains In Past Days – A Short-Term Upswing In Place?

Generally, the XTZ price continues to exhibit indications of vitality, with bulls aiming to break out of the bottom and advance to $1.80. If successful, the break would result in the highest trading level for XTZ since last month.

In the meantime, traders await the release of the U.S. Consumer Price Index on Wednesday, which in previous months has shown rising inflation. In May, the CPI climbed 8.6 percent, the biggest yearly rate in four decades.

Featured image from Klever News, chart from TradingView.com