Tezos (XTZ) is currently facing resistance from market bears, causing its price to rebound from lows of $0.71. Despite this downward trend, analysts believe that if bulls manage to push the price to $0.94, it could signal a potential upward trend. However, failure to reach this level could result in another downward movement towards $0.6.
The decline in XTZ’s price has been accompanied by a decrease in its 24-hour trading volume, which has fallen by 55%. Nevertheless, investors are still accumulating the asset, as indicated by the Chaikin Money Flow (CMF) indicator, which shows increased inflows. This growing confidence among investors is often correlated with price movement. However, the funding rate of XTZ has been fluctuating between positive and negative territory, suggesting a lack of consensus among investors regarding its short-term direction.
The current price range for XTZ is between $0.76 and $0.87, leading to a period of consolidation. A breakout or breakdown from this range would invalidate the current neutral position and determine the next market direction. If bulls successfully seize control, XTZ could reach $0.94. Conversely, a failure to do so could push the price down to $0.6.
In addition to the price analysis, Tezos recently announced its 16th upgrade, aimed at reducing block finality times to just 10 seconds on its mainnet. This upgrade, known as the Paris upgrade, was implemented to maintain low transaction fees on the Etherlink L2 network. As a result, Etherlink now offers cheaper transactions compared to Arbitrum and Optimism.
The upgrade also introduced the Data Availability Layer (DAL), which will enable Tezos’ Smart Rollups to scale and support millions of transactions per second (TPS) in the future. The Tezos rollup has already reached one million TPS in July 2023, thanks to horizontal scaling capabilities. The activation of DAL on the mainnet will significantly enhance Tezos’ capacity to verify the publication of rollup data.
Overall, despite the bearish market conditions, Tezos continues to make progress in terms of technology advancements and network upgrades, positioning itself as a leading blockchain platform.