The Tezos price has been in a long-term bearish trend after it peaked at $9.16 in October 2021. The XTZ coin is trading at $1.77, slightly above last week’s low of $1.40. This means that the coin has crashed by 80% from its ATH while its total market cap has dropped to about $1.56 billion. It is now the 47th biggest cryptocurrency globally.
Tezos is a blockchain project that was developed by Arthur Breitman and Kathleen Breitman. The two, who are married, had an idea of building a blockchain platform that solves the biggest challenges that Bitcoin and Ethereum have. For one, Tezos describes itself as a blockchain that is designed to evolve. Some of its top features are that it is powerfully scalable, highly energy-efficient, institutional-grade security, and smarter smart contracts. All these make it significantly faster than Ethereum.
Tezos has also boosted its brand image by partnering with a number of well-known brands. For example, it is one of the top sponsors for Oracle Redbull Racing team. Many large companies also use it as part of their NFT strategy. However, the Tezos ecosystem is smaller than Ethereum and other platforms like Avalanche and Cronos. A closer look at its ecosystem page shows that there are less than 100 apps in its ecosystem. This explains why the Tezos price has been in a downward trend lately.
Tezos price prediction
On the daily chart, we see that the XTZ price formed a descending triangle pattern that is shown in red. The coin managed to move below the lower side of this triangle pattern at $2.550. In price action analysis, this pattern is usually a bearish sign. It has also moved below the 25-day and 50-day moving averages.
The coin has also formed what looks like a bearish pennant pattern. Therefore, the downward trend will likely continue as long as the price is below the two moving averages. If this happens, the next key support will be at $1.40.
