Tezos (XTZ) Takes on Market Bears and Recovers its Lowest Price of $0.71

• Tezos (XTZ) continues its bearish streak by falling 29% so far this year and 4% in the last seven days.
• According to analysts, the bulls are looking to send the price to $0.94, however, failure to achieve this could trigger another downtrend to $0.6.

Tezos (XTZ) is witnessing a bearish extension, dragging the asset down the price curve as bulls fight to gain control. According to our market data, XTZ has retreated 4% in the last seven days, extending its decline so far this year to 29%. At the time of going to press, the asset was trading at $0.77, after a decline of 55% in its trading volume in 24 hours.

Despite this, investors continue to accumulate the asset, as the Chaikin Money Flow (CMF) indicator confirms a significant increase in inflows. According to analysts, the increase in buying pressure indicates growing confidence and has a direct correlation with price movement. However, the asset’s funding rate continues to fluctuate between positive and negative territory.

According to our research, this type of volatility typically indicates a lack of consensus among investors regarding the short-term direction of the asset.

Generally, positive financing rates indicate that long contracts dominate the market. On the other hand, negative financing rates also indicate the dominance of short contracts. With mixed signals from XTZ, there is ongoing consolidation as the price remains restricted within the range of $0.76 and $0.87.

However, a breakout or breakout would certainly invalidate the bullish neutral position. According to analysts, XTZ could reach $0.94 once the bulls manage to wrest control from the bears. Any failed attempt could bring the price down to $0.6.

Tezos (XTZ) announces its 16th rise

Outside the framework of price analysis, developers have been actively working to position Tezos among the leading blockchains, as its 16th update recently went live on the mainnet to reduce block completion times to just 10 seconds. According to a report from Crypto News Flashthe update was facilitated to keep transaction fees low over the L2 Etherlink network supported by the Ethereum Virtual Machine.

Etherlink is reportedly now cheaper than Arbitrum and Optimism following the update.

Arthur Breitman, co-founder of Tezos commented on the matter:

Thanks to the Paris update, Etherlink users will enjoy an improved UX: L2 time to finality will be on par with Arbitrum One and Optimism, but L1 publish latency will be (even) better.

Currently, Etherlink takes 500 milliseconds to close transactions. Additionally, data published to the main layer 1 is published in about 10 seconds. Meanwhile, in Optimism it would take two minutes and in Arbitrum One, seven.

In any case, Arbitrum One and Optimism remain two of the largest Ethereum L2s in terms of Total Value Locked. Arbitrum One has a TVL of $19.2 billion and Optimism has a TVL of $7.8 billion.

One of the key features of the Tezos update is the newly introduced Data Availability Layer (DAL) which is intended to allow Tezos Smart Rollups to scale to support millions of TPS in the future. In July 2023, Tezos rollup reached one million TPS. Its incredible impact was confirmed by Breitman.

This feat was achieved by exploiting horizontal scaling capabilities (1,000 rollup nodes running in parallel at 1,000 TPS each). The Paris update activates the Data Availability Layer (DAL) on the mainnet, increasing Tezos L1’s ability to witness the release of rollup data by several orders of magnitude.