Tezos [XTZ] has come a long way from its former reputation as a ghost chain, but the #37 biggest crypto by market cap still tends to get buried under the much bigger projects capturing the headlines. Still, XTZ has seen some interesting price movements that intrepid investors will want to track.
Xzibit 1: A rally
At press time, XTZ was changing hands at $2.04 after falling by 2.82% in the past day, but rallying by 13.02% in the last week. Traders took notice as evidenced by the surging volumes, the likes of which were last seen around mid-May. Rather than buying the dip, it’s interesting to note that traders appeared to be fascinated by the coin’s rally.
So are the signs bullish or bearish for Tezos right now? According to TradingView, the Bollinger Bands for the asset have started to narrow, indicating relatively less volatility for the foreseeable future. Furthermore, it did not seem as if XTZ was heading towards becoming an overbought or an oversold asset, for the moment.
Adding on to that, the Awesome Oscillator [AO] was flashing consecutive green bars below the zero line, even though a red candle was forming at press time. This shows there is bullish pressure on the asset.
So, how do you feel about that?
There’s always a fair amount of excitement when a formerly notorious coin begins to recover. In this case, Santiment data showed that weighted sentiment for Tezos had crossed into positive – but not yet euphoric – territory at press time. This is a safe signal for the asset.
That being said, a project also needs community support in order to drum up popularity and fuel its next rally. Does Tezos have what it takes?
Well, after a quick but significant increase, the project’s social dominance metric was on a downtrend at press time – and has been steadily declining since about October 2021. This is not a bracing sign of user engagement.
Lock them down
Finally, don’t forget to take a look at Tezos’ total-value-locked [TVL]. With a TVL ranking of 42 and $62.83 million locked, Tezos saw a rise of 9.08% in the past week. However, the project’s TVL has lost 18.95% of its value in the past month.