The cryptocurrency Tezos (XTZ), which underpins the layer-1 Tezos blockchain protocol, experienced a surge of over 11% in a single day. Although this leap seems remarkable and possibly indicative of the end of the bear period, it doesn’t necessarily mean a new, aggressive bull market is underway.
Trade analysts associate this rise more with technical factors rather than any fundamental catalyst. Remarkably, XTZ managed to shatter a critical trendline that’s been in place since the later part of last year, which potentially ignited automatic buying.
However, before deep-pocketed investors can rejoice, XTZ must overcome another key challenge – crossing its 100DMA and paving the way for a reevaluation of its 200DMA positioned at $0.85. If XTZ achieves this feat, it could set the stage for a swift retest of the psychologically significant $1 mark, which would be a rally of approximately 40% from its present level.
Nevertheless, caution must be exercised; the rally isn’t guaranteed. There are strong macro headwinds present with ongoing geopolitical tensions straining the market. Additionally, the US economy’s outstanding performance continues to push back the expected commencement of a US interest rate reduction cycle.
Adding to the skepticism, the Tezos blockchain doesn’t appear to be in great shape. Its TVL (Trade Value Locked) in smart contracts has been stagnant for months, as per DeFi Llama, while its monthly transaction figures, according to TZStats, show a steady decline.
Considering this, it seems XTZ could potentially experience a pump soon, but the prospect is clouded with uncertainties. Therefore, it could be strategic for some to divert their attention towards other high-risk-high-reward strategies, one being participation in crypto presales.
Crypto presales allow investors to purchase tokens of budding crypto projects at a reduced price to finance their development process, and often potentially reap exponential gains. While this approach sounds promising, the crypto market’s unpredictable and volatile nature are inherent risks.
The team at Cryptonews, for instance, dedicates a significant amount of time to curate a list of promising presale projects. It’s beneficial to take a closer look at their list of the best crypto presales for 2023, all while remembering that cryptocurrency investment is a high-risk business – every iota of capital invested carries the risk of being lost.
Source: Cryptonews
