- Tezos (XTZ) price is down 2% this past week as cryptocurrencies struggle for direction.
- XTZ trades near $0.80 and risks declines to $0.65 if bears take control.
- However, network metrics suggest a resurgence in activity after recent upgrades – which could catalyse upside momentum.
Tezos is largely unchanged in the past 24 hours as most cryptocurrencies either retreat from recent highs or consolidate at levels that have held for much of July.
XTZ, which traded to highs of $0.90 on Monday, looks to be in the former group as its price hovers near $0.80. The coin’s current price levels are at a similar base seen on July 12 when bulls went on to test resistance above $0.92.
Tezos upgrades could catalyse network growth
According to data shared by crypto market intelligence platform Messari, Tezos has seen reduced activity since Q4, 2022. Account-related metrics such as active accounts have declined by 20% in the last three months compared to the first quarter.
The network has also recorded a decrease in new account registrations, with this down 16% QoQ, Messari pointed out in a report.
However, according to Messari, Tezos’ recent upgrades of Mumbai and Nairobi could catalyse fresh network growth. For instance, Mumbai has enabled decentralised app development via different languages, a scenario that will attract more developers to build on the network.
5/ Additionally, the recently released #Nairobi upgrade added notable features including an up to 8x increase in TPS, new functionality for Smart Rollups, a renaming of endorsements to attestations, faster propagation of pre-attestations, and more.
— Messari (@MessariCrypto) July 25, 2023
The Nairobi upgrade is another development that could bump usage, particularly with the TPS increased 8x and introduction of Smart Rollups among other improvements. Can these positives help XTZ price?
XTZ price prediction
As shown in the chart below, the price of Tezos’ native token has largely fluctuated between $0.65 and $1.2 since November 2022. But with a breakdown below $1 in recent weeks, it looks like bears could aim for the range lows again.
The weekly RSI is beneath the neutral point and sloping to strengthen the bearish outlook. However, bulls can still take control if they push towards the psychological area mentioned above.
Here the 20 and 50 EMA suggest robust resistance at $0.98 and $1.26. Tezos bulls can target $2.0 if they achieve the above.