- Tezos price has dropped sharply in the past two days.
- There is a sense in which Tezos has failed to become a viable ethereum rival.
- Technical chart shows that Tezos will likely crash to about $1.2.
Tezos price has dropped sharply in the past few days as cryptocurrencies recoiled. The XTZ token dropped to a low of $1.4033, which was the lowest level since July 3rd. The price has dropped by more than 13% from its highest level this week.
What is Tezos and why is it falling?
Tezos is a leading blockchain project that describes itself a self-amending cryptoledger. It is a platform that enables developers to build complex applications based on smart contract technology. Some of its unique features are its self-amendment and upgradability, proof-of-stake, smart contract security, and formal verification.
Tezos was launched in 2018. Since then, the developers have inked several major deals meant to increase its popularity among users and developers. For example, it is the official partner of Red Bull’s Formula 1 team and Manchester United. These teams have used it widely to launch their NFT projects.
Learn more about how to buy Tezos.
Still, there is a feeling that Tezos has failed to achieve its goal as a viable alternative to Ethereum. For example, according to DeFi Llama, the total value locked (TVL) of just $40 million.
Youves, the biggest DeFi platform in its protocol has a total dominance of 33%. It is followed by Tezos Liquidity, which has a TVL of $13 million. The other DeFi protocols have a significantly lower TVL.
As such, Tezos has been overtaken by other relatively young blockchains like Cronos, Avalanche, Polygon, and Waves.
The same is true in other blockchain industries like non-fungible tokens (NFT) and the metaverse. According to DappRadar, the volume of activity in Tezos has dropped sharply in the past few months. This decline is in line with that of other chains like Ethereum and Solana. So, what next for Tezos?
Tezos price prediction
The four-hour chart shows that the XTZ price has been in a strong recovery in the past few weeks. Along the way, the coin formed an ascending channel that is shown in blue. Now, it has pulled back and is trading at the lowest level since July 5th of this year.
Tezos price has dropped below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below the neutral point. Therefore, there is a possibility that Tezos price will continue falling as sellers target the key support level at $1.2. This price is about 16% below the current level.
