Tezos (XTZ) has been experiencing a bearish trend, with a 29% decline year-to-date and a 4% decrease in the last seven days. The price of XTZ currently sits at $0.77, with a 55% drop in its 24-hour trading volume.
Despite the downward movement, investors continue to accumulate XTZ, fueled by a significant increase in inflows as indicated by the Chaikin Money Flow (CMF) indicator. This uptick in buying pressure reflects growing confidence in the asset, although the funding rate fluctuates between positive and negative territories, signaling investor indecision on the short-term direction.
The conflicting signals surrounding XTZ have resulted in a consolidation phase, with the price range constrained between $0.76 and $0.87. Analysts predict that a successful takeover by bulls could push the price up to $0.94, but any failure in this attempt might lead to a drop to $0.6.
On a different note, Tezos recently unveiled its 16th upgrade to enhance the platform’s performance. This upgrade, which reduced block finality times to just 10 seconds, aims to maintain low transaction fees on the Etherlink L2 network. With this improvement, Etherlink has become more cost-effective than popular L2s like Arbitrum and Optimism.
Arthur Breitman, the co-founder of Tezos, highlighted the positive impact of the Paris upgrade, stating that Etherlink users can now enjoy faster finality times comparable to leading L2 networks. The Data Availability Layer (DAL) introduced in the upgrade is set to scale Tezos’ Smart Rollups to handle millions of transactions per second in the future, showcasing the platform’s commitment to innovation and scalability.
Overall, the crypto community awaits further developments and upgrades within the Tezos ecosystem, as the platform continues to make strides in enhancing its technology and user experience.
