Tezos Price Down By 6.6% – Time to Buy XTZ Coin?

The Tezos blockchain is an exciting crypto protocol. Given the popular Ethereum killer’s growing relevance in enabling the development of decentralized applications (dApps), thereby decentralized finance (DeFi) and non-fungible tokens (NFTs), more investors want to buy XTZ.

Although XTZ has dipped in the last 24 hours, this could sway savvy investors to buy XTZ for a bargain.

Tezos: Advanced Smart Contracts Protocol

Tezos was created to address key issues of scalability, security, and interoperability that has plagued both the Bitcoin and Ethereum networks. Conceptualized in 2014 and launched in 2018, Tezos blockchain supports smart contracts which are used by developers to build dApps.

With dApps directly responsible for the booming DeFi ecosystem, Tezos’ position is only becoming more established by the day.

In architectural make-up, Tezos uses a delegated proof-of-stake (dPoS) consensus algorithm which allows it to be faster and more scalable. It is also unique in that its network upgrades do not lead to split as it operates a flexible network. This flexibility allows upgrade proposals to be effected without the network suffering as a result.

Due to its highly efficient energy protocol, Tezos has attracted a number of ESG-minded protocols to its platform. This has seen the likes of McLaren Racing and music platform Oneof launch their NFT protocols on the Tezos network.

The Tezos blockchain’s native token is called ‘Tez’ which is represented by the XTZ symbol. The digital token is used for making governance decisions and voting rights and is also used for staking (called baking on Tezos protocol).

XTZ Price Struggling Against the Bearish Tides

The crypto market has changed guard often with rallies and ebbs a major feature of the emerging industry. However, the nascent space has seeen remarkable growth this year and hitting $2.5 trillion in valuation.

XTZ has also shown great promise and began the year on a high note.

The digital currency surged to $5.32 from just under $2.02 that it entered the year with. A dip saw it drop to $3.33 in mid-March before rallying. XTZ has continued its upward climb and jumped to $7.234 in the second week of April, increasing more than 100% in the process. A subsequent dip and retest saw XTZ surge beyond this price action on May 6 and traded for $7.5.

This month, XTZ has continued to surge in value and hit the $8.703 price peg on Oct. 3. The current bullish run saw the native governance token of the Tezos blockchain hit a 52-week high of $8.97 in the early hours of today.

At press time, XTZ is momentarily down 3.42% and trades at $8.472 on the daily chart. However, a weekly gain of 39.09% shows that the digital asset is on an uptrend and this may be a great time to buy XTZ.

XTZ Technical and Fundamental Analysis

Turning to the technical indicators show that XTZ is making a resilient stand against the current dip. The digital asset is trading well above the 20-day moving average (MA) support price of $6.514, indicating strong bullish momentum. This shows that investors are out to buy XTZ for long-term profits.

The relative strength index (RSI) figure of 62.38 further confirms this. Fundamental-wise, Tezos has seen growing adoption and has Formula 1 teams McLaren Racing and Red Bull Racing building fan engagement digital collectibles arts on its protocol. Also, popular musical artist Doja Cat has sold out her NFT collection on a Tezos-based NFT platform Oneof.

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