The week has finished with a high level of negativity throughout the cryptocurrency market. However, despite the widespread bloodbath, Tezos price is among the rare top 100 coins retaining a positive direction.
Currently, the value of Tezos is $1.33. Considering the fact that a month ago, their token’s value was $0.73, Tezos is the best performing top 20 coin with 82% rise. Moreover, this isn’t this month’s highest achieved price. On November 23rd, the price of XTZ reached $1.43. Meaning that those who invested in Tezos a month ago could have doubled their initial investments during the 98% surge.
Tezos price resists the bear market
It is already well-known that the majority of cryptocurrencies in the market follow the movement of Bitcoin. As CoinSyncom reported on November 22nd, BTC plummeted 14% in a day triggering a major, all-encompassing sell-off. Yet, Tezos seems to be more resilient than other cryptos. Despite the temporary setback, XTZ withstood the selling pressure at $1.08 to reach the new 3-months high valuation.
There are several reasons for this market anomaly.
The first and the most obvious is the big news of the French Army utilizing Tezos smart contracts for their financial operations. Knowing that many cryptocurrencies still remain without a real-world utility, the market recognized this project as the one with significant potential.
The second possibility is that Tezos might have been underpriced. The main cause for that might have been the prolonged mainnet token launch date making investors’ trust decline. However, once the company launched the technology, it seems that the situation has fundamentally changed. Therefore, Tezos may be going through the price re-discovery period.
The third ground for the pump is the firm and active community holding the price above crucial levels.
Tezos nurtures a strong community with branches in many countries. Therefore, holders inside the community do something like all the lost BTC does for the price of Bitcoin. If there are fewer sellers than buyers, there is a high probability that the price of the asset is going to go up.
There is still room for a reversal
There is still a possibility for Tezos to fall victim to the overall market sentiment. Despite all the positives, it seems that the price might be forming a rising wedge pattern, which usually announces a bearish reversal.
While the XTZ price is rising, the YTZ/USD 4-hour chart shows that there is a possible RSI divergence. Furthermore, the divergence looks like MACD is currently forming a death cross. These two signals, while possibly proclaiming a bearish reversal, might just be revealing the upcoming price decline only towards the new higher low inside the wedge.
Meanwhile, Tezos’ pump has certainly taken the attention of crypto-Twitter. Thus, a Twitter user Crypto Bert posted a link to the gigantic transaction of $1.2 million from an unknown XTZ wallet address towards the Binance exchange. Considering that the current daily trading volume of Tezos across all exchanges reaches barely above $60 million, a single sell order of almost 2% of the total volume could be fatal.
At the time of the press, Tezos sits at the 14th spot by its market capitalization with the circulating supply of 660 million XTZ.