Why is Tezos Going Parabolic While Crypto Markets Bleed?
Tezos (XTZ) seems to be immune to the recent crypto market slide, continuing its rally from the past weeks. XTZ was up to as high as $1.33, gaining momentum and potentially signaling a successful quarter.
XTZ Carries Warning for Pump Behavior
Tezos price moves have confused traders, as there is no significant underlying reason for the appreciation. The best explanation is hype based on the recent addition to Coinbase, making the asset more accessible.
4H and daily breaking consolidation.
Picked up some this morning for a potential push. Bitcoin may try to ruin the party but for now the chart shows promise. pic.twitter.com/C0KfvzxAkh
— NebraskanGooner
(@nebraskangooner) November 21, 2019
The XTZ price move follows bullish chart indicators, which help move a relatively small market. Tezos trading volume clocked around $113 million in 24 hours and is the second-biggest in the coin’s history. In the past month, XTZ moved up from stagnant positions around $0.76, once again attempting to move into a price of a few dollars.
Tezos Project Delay Led to Lower XTZ Price
One of the setbacks for XTZ was that it was a latecomer, with the main net launch during the bear market. This pushed down market prices, as XTZ struggled for listings, and the asset went through a new phase of price discovery. The preliminary token, only thinly traded, easily moved to $4-5, but the asset was not as lucky.
Now, Tezos seems to be catching up. The coin has a unique trading profile, as it trades on a handful of exchanges. Most of the volumes are concentrated on Binance, with Kraken and Coinbase also adding fuel. This would allow XTZ to rise based on a concerted pump activity on those markets.
XTZ price is also highly independent from the moves of Bitcoin (BTC), as 27% of volumes are directly against the US dollar, while 30% are against Tether (USDT). This allows the coin to behave counter to the markets, and discover unique sources of liquidity.
Whale activity also suggests that Binance may be the arena of new price moves for XTZ. Although, a potential dump following the pump is not out of question.
910,000 #XTZ (1,274,598 USD) transferred from unknown wallet to #Binance
Tx: https://t.co/omx9mjYlal whale_alert
— Crypto Bert (@CryptoBert1) November 23, 2019
The other benefit is the strong Tezos community, which remains enthusiastic despite the bear market. The supporters of the network focus on its potential to carry smart contracts and security tokens, while some advice not to look too much into market prices.
Dear all #Tezos lovers. Please don't make noise, and enjoy your bags. #XTZ must not fall into FOMO Army and keeps going well, supporting technical development. It's not a goal of a simple trade, but a long term perspective. #Tezos is not marketing. Long live to #xtz
— Jacques Marron
(@jacquesmarron) November 22, 2019
The recent revival of XTZ and the option for custodial wallets through Coinbase also attracted the attention of Amun, a creator of exchange-traded products based on crypto assets. Tezos is one of the nine coins selected by Amun, to create products for the European market.
What do you think about the XTZ pump? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter: @nebraskangooner, @CryptoBert1, @jacquesmarron
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