Tezos Price Up 14.15% – Time to Buy XTZ Coin?

Investors across the market are talking about the current gains in the XTZ price – particularly with the major slump of large-capped coins. The asset has been bucking the growing bearish trend for a while, and many traders might consider buying the XTZ coin. Considering that the best way to make investment decisions will be from an informed point of view, we’ll be looking into the XTZ price and what the current rally means.

Tezos: A Precursor to Today’s Blockchain Age

Tezos is one of the oldest blockchains. The platform was launched in 2014 by Artur and Kathleen Breitman through Dynamic Ledger Solutions – a startup they founded.

Tezos uses an open-source platform, as well as smart contracts to support the decentralized economy. Digital assets can be built on the blockchain, and it also supports financial contracts and decentralized applications (dAps). Tezos also has a smart contract language – called Michelson – that offers high security through a verification mechanism that keeps its code functional.

The goal for Tezos when it launched was to create a “self-amending blockchain.” While its implementation was complex, the concept was pretty simple; with Tezos and XTZ, people will vote on the blockchain’s rules. Once decided, the blockchain itself would update automatically to reflect the changes made and voted upon.

Using this voting system, Tezos aims to reduce the chances of a hard fork in the blockchain.

XTZ is the native cryptocurrency for the Tezos network. It plays a prominent role in operating the network, and it can be used for spending and staking. Users can buy XTZ and “bake” it – essentially, getting the ability to vote on network proposals. Bakers also get a small percentage of rewards allocated for their tasks. It’s essentially staking.

XTZ: Price Movements in 2021

The XTZ price moved in tandem with several fellow large-cap coins in 2021. The asset started the year trading at $2, and it rode the market rally to successive highs in the first few months – first getting to $7.65 on April 17, then hitting $8.40 on May 7.

Following the market downturn, the XTZ price soon slipped. Investors ran for the hills, leaving the coin to drop all the way to $2.42 in two weeks. That marked a drop of 71.1 percent, making XTZ one of the worst-hit during the bear market.

Sadly, this wouldn’t be the end of the drop. The XTZ price continued to reduce and $2.08 on July 22, following a massive market sellout. At its bottom, the XTZ price had dropped as far as 75.2 percent from its all-time high.

But, with the market rallying again, XTZ actually began to pick up relatively well. A month after bottoming out, XTZ grew by 79.2 percent to $3.73. The rally continued all through August and the beginning of September, with the XTZ price notching several gains in the process.

Currently, XTZ trades at $7.25 – up 14.15 percent in the past day and 25.05 percent in the past week.

XTZ: Technical & Fundamental Analysis

XTZ looks very strong technically. The coin is outperforming its 20-day and 200-day moving averages (MAs) of $5.50 and $4.26 handily, thanks in part to its impressive performance over the past week.

The coin’s relative strength index (RSI) also stands at 69.91, showing that investors have noted its price range and are buying in. The RSI has been rising for the past five days, so investor sentiment is pretty strong here.

The XTZ price should also get a bit of a boost as the adoption of the Tezos blockchain ramps up. The Tezos blockchain crossed 400,000 daily transactions for the first time. This shows increased interest from developers and users alike.

Also, reports confirmed that pop singer Doja Cat recently launched a non-fungible token (NFT) on the Tezos blockchain. This should spur adoption and increase transaction frequency even more.

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