Tezos Price Up 6.86% – Time to Buy XTZ Coin?

With the market currently in a downturn, investors are looking to buy XTZ to increase their returns. Over the past few days, the coin has emerged as a haven for many investors, posting impressive gains even while other coins’ prices slump

However, as many investors will tell, there’s much more to a coin’s price than just what it says. Is there a good enough reason for you to buy XTZ right now? What are the factors leading to this price increase? Below, we’ll consider all you need to know about Tezos:

Tezos: A Self-Amending Blockchain

Tezos is one of the oldest and most popular blockchain platforms in the world. A self-styled “self-amending” blockchain, Tezos is a proof-of-stake chain that offers peer-to-peer transactions through its platform and its XZT cryptocurrency.

Thanks to smart contract functionality, the Tezos blockchain also makes it easy for developers to build decentralized applications (dApps). The blockchain had one of the biggest Initial Coin Offerings (ICOs) of all time, raising about $235 million in the early days of the crypto takeover.

While many blockchains look to solve the fabled blockchain trifecta, Tezos aims to bring a level of civility to blockchain upgrades. Most first-generation blockchains like Bitcoin and Ethereum remain fraught with limitations that can only be fixed through significant network upgrades. Sometimes, these upgrades lead to hard forks, causing disruption among communities and possibly even creating new chains.

We’ve seen this happen with Bitcoin and Bitcoin Cash, as well as Etheruem and Ethereum Classic

Instead, Tezos look to solve this problem with its self-amending network. Tezos has implemented a system where users can vote on critical network changes that can be implemented without the need for hard forks.

As explained, XTZ is the network token for the Tezos blockchain. It can be used for transactions and payments, and investors can also buy XTZ to facilitate voting and for governance purposes.

XTZ: Market Position

While many blockchain-based tokens have seen their profiles rose in 2021, XTZ hasn’t been the luckiest. The asset remains a top choice, occupying the 30th position on CoinMarketCap’s list. XTZ currently has a market cap of $5.39 billion – up 3.58 percent in the past day. The coin’s 24-hour trading volume stands at $1.05 billion, a staggering 125.6 percent increase in that time. Its circulating supply currently stands at 860.75 million tokens.

Of course, this isn’t to say that XTZ hasn’t performed well this year. The coin started 2021 trading at $2, and it saw its price rise as high as $8.41 in May. The downturn took XTZ as low as $2.41, and subsequent bearish cycles dragged the coin’s price even further to bottom out at $2.08in July.

But, the past few months have seen a jump in the XTZ price. The coin’s price has risen by 102 percent since the start of August, and XTZ is looking more attractive once again.

With a current price of $6.08, XTZ is trading up 6.86 percent in the past day, but down 3.34 percent in the past week.

XTZ: Coin Price Analysis

While investors might be looking to buy XTZ, it is worth checking the coin’s metrics. XTZ is looking quite good technically. Thanks to its performance in the past few days, the coin has managed to break through its important moving average (MA) metrics. The XTZ price is above its 20 to 200-day MAs, although its performance today will be integral in its bid to cross the 20-day MA of $6.19. The smart money will bet on XTZ breaking that hold.

XTZ’s MACD is also in a strong position, showing a buy signal. Lastly, the coin’s relative strength index (RSI) is holding at 52.92 – still underbought for a large-cap coin on the rise. This seems like a good time to buy XTZ.

Adoption could also be on the rise for Tezos. Earlier this week, Tada – a blockchain-based ride-hailing app – migrated to the Tezos blockchain as it looks to employ greener technology. Official data also recently showed that XTZ has moved into the 10th position for cryptocurrencies by staked value with $4.49 billion worth of the coin now in staking wallets.

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