Despite a growing user base, the Tezos price is underperforming. However, every new endorsement adds to the bullish case for the blockchain’s XTZ coin.
Tezos is slightly lower in early Wednesday trading. TXZ is currently changing hands at $2.8222, down $0.42 (-1.48%). However, the coin has advanced 2.67% in the last seven trading days.
This morning, the broader cryptocurrency market is trading with a positive tone. As I look down the top 50 digital assets list, I can see winners outnumber losers by more than three to one. Unfortunately, for Tezos holders, the XTZ token is in the minority camp. This may be surprising considering the popularity of the Proof-of-Stake network.
The latest Tezos price translates to a market cap of $2.4 billion, which makes it the 43rd largest cryptocurrency, just ahead of IOTA.
Tezos adoption grows
Over the last few weeks, there have been several encouraging announcements. Firstly, Formula 1 powerhouse Mclaren has chosen Tezos as their official partner for a planned Non-fungible Token (NFT) launch.
Additionally, six days ago, USDC selected the network for issuance of its US dollar-pegged stablecoin.
Furthermore, today, it was revealed that the leading decentralized freelance marketplace, CryptoTask, will become the latest project lured by the Tezos network’s low-cost, energy-efficient solutions.
DeFree application CryptoTask has over 35,0000 users and facilitates 100+ daily transactions. Furthermore, that number is increasing, and the marketplace is attracting more than 100 new sign-ups every day.
“It’s a memorable day that we have been waiting for for months now. CryptoTask on Tezos will disrupt freelancing as we know it. The platform and our users will hugely benefit from the Tezos blockchain through low gas fees, smarter smart contracts, and low energy consumption. We can’t wait for our users to see and feel the change Tezos is bringing to our freelance marketplace,”
Said Ivan Nanut, Co-Founder of CryptoTask.
XTZ technical outlook
The daily chart underscores the mediocre Tezos price performance so far in July. Although in fairness, this follows TXZ’s 50% recovery from the 22nd of June’s $2.070 low.
However, after topping out at $3.1500 on the 4th of July, the coin has traded independently from much of the market. Whilst the broader crypto space has been relatively buoyant, TXZ has slipped 10%.
The price is currently trading below all three major moving averages. Additionally, the 50-day moving average at $3.2300 has completed bearish crossovers of the 100 and 200-day indicators at $4.5600 and $3.9600.
Furthermore, we can see that the price action has resulted in the formation of a bear flag pattern which typically indicates a period of consolidation before continuing lower. Having said that, the Relative Strength Index is making some progress, and if the price continues this stunted recovery, it may soon break out of this flag.
The top edge of the formation aligns with the 50 DMA. Therefore, a close above $3.2300 would allow TXZ to advance to the 100-day DMA at $3.9600.
However, should the price reverse through $2.5850, it would open the door for a leg lower to the June 22nd low.
Considering the network’s fundamental progress, I maintain a bullish outlook for Tezos. However, my preference would be to enter on a confirmed clearance of resistance. Of course, Crypto markets are notoriously volatile and should TXZ trade below $2.0700; the immediate bullish outlook becomes invalid.
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Tezos price chart (daily)
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