Crypto Market Sentiment Still Lacks Positivity
Tezos is an open-source platform for assets and applications, known for its smart contract security, long-term upgradability, and open participation. The Tezos team conducted an initial coin offering (ICO) in July 2017, raising the equivalent of $232 million (66,000 BTC and 361,000 ETH), marking the largest ICO at that time.
Tezos allows holders of its XTZ token to vote on potential changes to the platform’s rules, and it is also noteworthy that Tezos can implement new technological innovations without compromising community consensus.
Tezos has lost more than 25% since August 17, and the risk of further declines is still present. A variety of factors appear to be causing investors to distance themselves from Tezos. As is often the case, Tezos’ recent significant volatility is closely tied to the price of Bitcoin and the U.S. stock market.
Bitcoin fell below $19,000 this Wednesday, its lowest point since July. However, today BTC has gained almost 11%, trading at around $21,260, but remains in a downtrend unless it breaks through the $25,000 level. The crypto market sentiment continues to show no sustained positive momentum for several weeks, largely influenced by global stock market declines and the continuing strength of the U.S. dollar.
The Federal Reserve’s Ongoing Fight Against Inflation
The Federal Reserve continues to combat inflation by raising its key interest rate and maintaining a tight monetary policy. Cleveland Federal Reserve Bank President Loretta Mester stated in a speech on Wednesday that it is premature to declare that inflation has reached its peak. She further added:
“In my view, it is far too soon to conclude that inflation has peaked, let alone that it is on a sustainable downward path to 2 percent. As a result, the Fed must remain resolute in raising its target rate and keeping it elevated, even though there may be bumps along the way.”
Federal Reserve Chair Jerome Powell also indicated that the Federal Open Market Committee would not pause its efforts to reduce price growth, which has led to concerns that aggressive interest rate hikes could trigger another sell-off in the cryptocurrency market.
Craig Erlam, Senior Market Analyst at Oanda, noted that the outlook for risk appetite in the near term is not favorable. AvaTrade’s Chief Market Analyst Naeem Aslam warned of a narrowing Bitcoin trading range, which suggests that a massive capitulation might be on the horizon.
September is historically a challenging month for the cryptocurrency market, as it has brought consistent losses for crypto holders over the past five years. Data from Cryptorank shows that Bitcoin and the broader cryptocurrency market have experienced significant losses each September, with only one positive September in Bitcoin’s trading history, in 2015 and 2016.
Tezos техникалық талдауы
Tezos (XTZ) has dropped from $2.03 to $1.40 since August 17, 2022, and its current price stands at $1.45. Tezos may struggle to maintain its position above the $1.40 level in the coming days. A break below this level could signal a further decline, potentially bringing XTZ to the $1.30 price level.
On the chart below, I’ve marked the trendline, and as long as Tezos’ price remains below this line, a trend reversal cannot be confirmed, and the price of XTZ remains in the SELL-ZONE.
Key Support & Resistance Levels for Tezos
In this chart (from February 2022), I’ve marked the primary support and resistance levels to help traders understand where the price could move next. Tezos (XTZ) is currently in the “bearish phase,” but if the price breaks above $2, it could signal a “buy” opportunity, with the next target potentially around $2.20. The current support level is at $1.40, and if this level is breached, it could signal a “SELL” position, leading to a potential drop to $1.30. If the price falls below $1.30, the next significant support could be at $1.
Factors Supporting a Rise in Tezos Price
Surveys indicate that institutional investors remain bearish on cryptocurrencies, and it’s important to note that this bearish sentiment is not limited to institutional investors. Spot markets are also feeling the pressure as sell-offs resume, making it difficult for Tezos (XTZ) to hold above the $1.40 level.
Tezos (XTZ) remains in the “bearish phase,” but a price movement above $2 would trigger a “buy” signal, with the next potential target at $2.20. Traders should also consider that Tezos’ price is closely linked to Bitcoin’s price. If Bitcoin rises above $22,000, Tezos may increase to $1.60 or even $2.
Indicators of Further Decline for Tezos
Tezos has declined by over 25% since August 17, and the risk of further drops remains. Several factors seem to be driving investors away from Tezos. As usual, the volatility in Tezos’ price is strongly tied to Bitcoin’s price movements and the U.S. stock market.
Bitcoin fell below $19,000 this Wednesday, its lowest point since July. The lack of sustained positive sentiment in the crypto market continues to correlate with declines in global stock markets and the enduring strength of the U.S. dollar.
Analysts’ and Experts’ Price Expectations for Tezos
The cryptocurrency market continues to be bearish due to weak demand and macroeconomic events. Investors remain concerned that another aggressive interest rate hike from the U.S. Federal Reserve could spark another sell-off, making it challenging for Tezos (XTZ) to maintain its position above the $1.40 level. Craig Erlam, Senior Market Analyst at Oanda, stated that the outlook for risk appetite in the near future does not look promising. AvaTrade’s Chief Market Analyst Naeem Aslam also warned about a narrowing Bitcoin trading range, indicating that a large capitulation might be imminent.
