Tezos price is still trading close to its lower long-term support level at the $1.30 mark. But with developments happening in its ecosystem, XTZ investors are hopeful of a breakout.
XTZ price broke below the multi-year support line of $1.35 on Oct. 13. Although Tezos tried to make a few bullish strides since then, bears have remained in control. The larger price action is also trending down since Sep. 12.
XTZ Price Prediction: Consolidation Continues
Tezos price noted a 25% pullback in August, followed by another 15% retracement in September.
From a technical point of view, XTZ price flashed bearish signals. The Relative Strength Index showed sellers were dominating the crypto market.
On the daily timeframe, XTZ price remained well below its key resistance level of $1.50 despite bouncing off its weekly low of $1.35 on Oct 17 and 18.
A recent Messari report presented that during Q3, Tezos recouped some of the losses with a 31% bear market rally. However, the 31% price gains didn’t hold due to the larger crypto market’s bearish momentum.
Notably, revenue-centric metrics for Tezos were down substantially throughout Q3. XTZ revenue dived to $191,000, presenting a 60% drop quarter-to-quarter. XTZ had a circulating P/S ratio of 2,181x, while transaction fees saw a 58% drop.
Tezos DeFi Ecosystem Sparks Hope
Tezos released the 11th protocol on September 23, while its next protocol upgrade is scheduled for mid-Q4. The next upgrade is set to introduce Smart Contract Optimistic Rollups (SCORUs).
Notably, the developments in Tezos’s ecosystem have been reflected in the coin’s development activity which is in a considerable uptrend. Even though the price continued to consolidate, the coin’s development activity started rising on Oct. 14.
However, low social volumes and a negative weighted sentiment presented that there was not much noise around the project.
Nonetheless, a bullish trend could be seen in the total value locked (TVL) in the XTZ DeFi ecosystem. TVL appreciated by almost 185% from $14 million to $40 million in a matter of 10 days.
A rise in TVL could be indicative of institutional interest rising in the project and could act in favor of XTZ bulls.
Going forward, if XTZ price breaks and holds above $1.50 resistance, a good retail push can send the coin to as high as $2. However, an invalidation of the bullish thesis can send XTZ price down to the lower $1.2 price range.
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