Tezos (XTZ) Soars by 35% Daily: Is There More Room for Growth?

TL;DR

• Tezos (XTZ) surged to $1.30 before stabilizing at $1.10, rejoining the top 100 cryptocurrencies with bullish predictions for further gains.
• XTZ was once a top-20 digital asset with a $7.3 billion market cap during 2021’s bull run.

The Top Performer

Most of the leading cryptocurrencies have consolidated in the past 24 hours. Bitcoin (BTC), for instance, is currently worth around $91,500 (per CoinGecko’s data), representing a mere 0.6% increase on a daily scale. Ethereum (ETH) is hovering at approximately $3,100, or a 1% rise for the same period.

However, some digital assets have still recorded double-digit gains, with Tezos (XTZ) being an evident example. Several hours ago, its valuation pumped to a seven-month high of almost $1.30. It later retraced to the current $1.10. Its market capitalization soared above $1 billion, marking XTZ’s return to crypto’s top 100 list.

XTZ Price, Source: CoinGecko

While the exact reason fueling the rally remains unknown, many analysts expect a further jump in the near future. The X user JAVON MARKS claimed XTZ’s price has surged after “recently displaying a regular bullish divergence and breaking out of a smaller setup.” The trader added that this may be a precursor of a gigantic rally to as high as $7.609. 

CryptoJack described XTZ’s latest pump as “an explosive bullish rally.” According to him, though, the price now faces resistance at the 0.5 Fibonacci level. 

“I expect a retest of the 0.5 fib level before a bounce and pump on Tezos,” they added.

CryptoTony chipped in, too. The trader promised to jump on the XTZ bandwagon as an investor if the price surpasses the resistance level of around $1.40. 

XTZ’s Former Glory

While XTZ is currently the 92-biggest cryptocurrency, it was among the leaders during the bull run in 2021. Back then, its price hit an all-time high of over $9, while its market capitalization pumped to $7.3 billion, positioning it in the top 20 club. 

Its solid performance was partially fueled by essential partnerships. Towards the end of 2021, Tezos teamed up with Ubisoft (a platform that allows users to acquire specific NFTs). Shortly after, it inked a $27 million deal with one of the most popular football clubs – Manchester United. 

The platform serves as official blockchain and training kit partner of the team. The collaboration with “the Red Devils” (as the club is known in the sports world) remains ongoing.

It will be interesting to see if Tezos and its native token will return to its former peak during this bull cycle. The odds might be better if the overall bullish environment lasts in the following months and if Tezos forms additional strategic alliances.