Tezos price prediction: Can XTZ rebound to previous highs?
The Tezos (XTZ) cryptocurrency token has plunged nearly 77% year to date (YTD), as of 6 December 2022. It’s down more than 88% from the token’s all-time high in October 2021.
The decline in the token’s price has come as a result of volatility and uncertainty induced in the broader markets and cryptocurrency markets due to a string of macroeconomic factors.
The ongoing Russia-Ukraine war, record-high inflation led by higher prices for fuel and food, and the US Federal Reserve’s (Fed) faster-than-expected monetary policy tightening to tame inflation have been instrumental in inducing global volatility.
What lies ahead for the XTZ token’s price this year and in the long term? In this article we take a closer look at the blockchain and analysts’ Tezos price predictions.
What is the Tezos (XTZ) token?
Tezos is an open source platform that addresses crucial barriers that face blockchain adoption for assets and applications, backed by validators, researchers and builders around the world. The Tezos platform is based on smart contracts similar to those used on the Ethereum blockchain.
XTZ, or Tez, is the native token of the Tezos blockchain. It is used to interact with decentralised applications (dApps), remunerate fees, secure the network via staking and offer a basic accounting unit on the Tezos platform.
The Tezos initial coin offering (ICO) took place on 1 July 2017. The two-week sale raised nearly $232m in bitcoin (BTC) and ethereum (ETH), vastly surpassing the project’s target of $20m.
Arthur Breitman, a research engineer who had worked for Google X and autonomous driving technology development firm Waymo, first proposed the Tezos blockchain in a position paper released in August 2014.
Breitman released a whitepaper in September 2014 with a more detailed description and specification about the Tezos project. Both papers were released under the pseudonym L M Goodman.
The papers argued that the design of Bitcoin was defective and did not offer a very inclusive governance process, while Tezos came with an on-chain governance model. This would allow holders of the token to vote on proposed protocol upgrades to prevent forking the network.
Technical overview: Will the token inch higher?
According to CoinCodex, XTZ price prediction sentiment at the time of writing (6 December 2022) was bearish, with 13 technical analysis indicators signaling bullish signals, and 17 signalling bearish signals. The fear and greed index showed ‘extreme fear’ at a reading of 25. The Tezos price prediction for 5 January had the price falling to $0.849372.
The weekly 50-day simple moving average (SMA) was indicating ‘sell’. The moving average convergence divergence (MACD) (12, 26) was ‘neutral’ at 0.02, while the Relative Strength Index (RSI) indicated a ‘neutral’ at 41.84. An RSI reading of 30 or below indicates that a security is underbought or undervalued. Values above 70 indicate that an asset could be overbought.
The Commodity Channel Index (CCI) (20) was indicating ‘neutral’ at 66.67. The CCI is a momentum-based oscillator used to establish when an asset’s price is reaching overbought or oversold territory.
The tezos token price’s classical pivot point was $1.012024, with support levels at $0.994595 and $0.983681. The strongest support level was at $0.966253. The token’s resistance levels were at $1.022938, $1.040366, and $1.051280, according to Coincodex.
Over the past seven days, Tezos price was most positively correlated with the price of Gnosis, Decentraland, Ravencoin, VeChain and DeFiChain, and most negatively correlated with the price of Helium, SONM, Binance Coin, Chain and 1inch Network Token, as of 6 December 2022.
Tokens positively correlated with the XTZ token indicate that the movement of any one may have a statistically considerable weight to pull the other tokens in the same direction. For tokens negatively correlated with XTZ, a move in any one direction for XTZ would indicate their move in the opposite direction.
Tezos price prediction: 2022 to 2025
As of 6 December 2022, algorithm-based forecaster Wallet Investor had a negative outlook for the token over the next 12 months. The service expected that the average price could fall to $0.1064 in one year.
DigitalCoinPrice had a more optimistic Tezos coin price prediction from 2023 to 2031. The forecaster’s Tezos price prediction for 2023 had the average price at $2.35 and $3.41 in 2024. The Tezos price prediction for 2025 was $4.35, $4.35 in 2026, $5.44 in 2027, $7.37 in 2028 and $10.40 in 2029, Tezos price prediction for 2030 was $14.29, and $19.29 in 2031.
When studying Tezos crypto price predictions, investors must remember that the cryptocurrency market is extremely volatile. Forecasts are based on inferences drawn from past performance by analysts and can be wrong.
Only you can decide if the Tezos token is an investment option for you. Always take into account a token’s collaborations, partnership deals and fundamentals before making investment plans. And never invest money that you cannot afford to lose.
FAQs
Is Tezos a good investment?
Whether XTZ is a good investment for you or not will depend on your portfolio composition, investment goals and risk profile, among other factors. Different trading strategies will suit different investment goals with short or long-term focus. You should do your own research. And never invest money you cannot afford to lose.
Will Tezos go up or down?
The price of the Tezos token is expected to decline to $0.1064 in 2023, according to Wallet Investor. However, DigitalCoinPrice estimates that the price of the coin could go up to $19.29 in 2031.
Note that analysts’ forecasts can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
Should I invest in Tezos?
Only you can decide if Tezos is the right investment for you. Keep in mind that the market is volatile. Always do your own research and remember to never invest more money than you can afford to lose.
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