September 26, 2022

Tezos Price Recovers Following DAO Announcement

2 min read

Tezos (XTZ) seems leading the recovery in the cryptocurrency market after a team of developers revealed that users will quickly be able to develop DAOs on the blockchain.

Tezos Expands to Meet Market’s Needs

Tezos saw its market price fall by more than 20% in the past 24 hours. XTZ crashed from a high of $2.90 to a low of $2.30, producing almost $1.80 million in liquidations across the board.

While rates tumbled, the number of XTZ-related points out on various social media networks increased. LunarCRUSH signed up over 5.37 million social engagements, a 157% boost.

Tezos Social Engagement by LunarCRUSH
Tezos Social Engagement by LunarCRUSH The favorable belief appears related to the recently announced Homebase project, which will allow anybody to create Decentralized Autonomous Organizations( DAOs )on the Tezos blockchain. DAOs allow individuals to create, vote on, and fund propositions, a function currently seen on a number of other blockchains.

The news was invited by the cryptocurrency neighborhood and worked as a catalyst for XTZ’s recovery.

Tezos Recovers Promptly

The spike in Tezos’s social media presence appears to have encouraged market individuals to take advantage of the down cost action by purchasing XTZ tokens at a discount rate. The significant boost in purchasing pressure permitted XTZ to recuperate all losses incurred, driving its market value upwards by more than 33%.

From a technical point of view, Tezos rebounded from the middle trendline of a coming down parallel channel that has actually formed within its day-to-day chart given that late April 2020.

Whenever that XTZ has increased to this technical development’s upper limit ever since, it has been rejected and backtracked to the pattern’s middle or lower edge. From this point on, it has tended to rebound, constant with the qualities of a parallel channel.

A further boost in need for Tezos around the present rate levels may permit it to lastly break through the channel’s upper trendline. By slicing through this substantial resistance barrier, the odds of another 39% upswing towards XTZ’s previous all-time high of $4.50 will increase.

Tezos US dollar price chart

XTZ/USD on TradingView It is worth noting that the bullish outlook will just come to fruition if Tezos turns the $3.20 resistance into support. Failing to do so could lead to a rejection that sends the cryptocurrency’s rate to retest the channel’s middle trendline at $2.20.

At the time of writing this author held Bitcoin and Ethereum.