Tezos (XTZ) price is still trading near its lower long-term support level at the $1.30 mark; But with the development taking place in its ecosystem, XTZ investors are hoping for a breakthrough.
During the past week, Tezos price broke below the multi-year support line of $1.35. Even though XTZ price tried to gain some momentum but the bears remained in control, the major price action was mainly bearish since September 12.
Tezos (XTZ) Price Consolidation Continues
The price of Tezos recorded a 25% drop in August, followed by a 15% drop in September. From a technical perspective, XTZ price is showing bearish signs as the Relative Strength Index shows that sellers are dominating the market.
On the daily time frame, XTZ price remained well below its key resistance level of $1.5, despite jumping from its weekly lows of $1.35 on October 17th and 18th.
A recent Messari report presented that during the third quarter, Tezos made up for some losses with a 31% bear market rally. However, the 31% price increase did not hold due to the bearish momentum of the larger crypto market.
Notably, throughout Q3, revenue-focused metrics for Tezos were down significantly as XTZ revenue fell to $191,000, projecting a 60% decline QoQ. XTZ had a circulating P/S ratio of 2,181x, while it saw a 58% drop in transaction fees.
XTZ’s TVL and Growth Activity Raises Hope
Tezos released its 11th protocol on 23 September, while its next protocol upgrade is due in mid-Q4. The next upgrade is set to introduce the Smart Contract Optimistic Rollup (SCORU).
Notably, the development of the Tezos ecosystem has been reflected in the development activity of the coin which is quite upward. Even as the price continued to strengthen, the coin’s development activity began to pick up from October 14.
However, the low social volume and a negative weighted sentiment presented that there was not much noise around the project.
Nevertheless, a bullish trend can be seen in XTZ’s DeFi Total Value Locked (TVL) as TVL appreciated by around 185% from $14 million to $40 million within 10 days.
The rise in TVL could be a sign of increasing institutional interest in the project and could act in favor of the XTZ bulls.
Going forward, if XTZ price breaks out and stays above the $1.50 resistance, a decent retail push could send the coin as high as $2. However, invalidation of the bullish thesis could push XTZ price into a lower $1.2 price range.
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