The Tezos price bounced back on Tuesday as sentiment about the coin improved. XTZ, its native token, is trading at $4.5, which is about 15% above the lowest level on Monday. This rebound has brought its total market capitalization to more than $3.9 billion.
The Tezos price is rebounding mostly because of its ongoing user adoption in the non-fungible token (NFT) marketplace. Last week, it was announced that Ubisoft, the giant French gaming company, would launch its NFTs using Tezos network.
Other companies like Redbull have also turned to the network for its NFT projects. This trend is remarkable since the network’s NFT project was left for the dead a while ago. At the same time, many developers have started building on Tezos.
The daily chart shows that the XTZ price has been in a deep sell-off in the past few weeks. It has fallen by about 50% from its highest level in October. This sell-off has happened as developers react to the ongoing sell-off of cryptocurrencies. The price has moved below the 25-day moving average and formed a falling widening channel that is shown in black. In price action analysis, a falling widening channel is usually a bullish sign.
Therefore, in my view, I suspect that the coin will bounce back in the coming days. If this happens, the next key level to watch will be at $6, which was the highest level on December 9. This view will be invalidated if the price falls below $4.0.
This post was last modified on %s = human-readable time difference 04:30