Tezos saw a “V-shape recovery” at the beginning of the year and has since grown by more than 110%. High volatility has significantly influenced the price, which has surged by more than 25% during the past several days. Although the surge to the north was mostly driven by positive market sentiment, other elements were also present.
Important news about Google cloud joining with the Tezos blockchain came after the XTZ price increase. By giving users access to the Tezos chain, setting up nodes, developing Web 3 apps, and other tasks, the Google cloud wants to establish itself as a validator on the network. The partnership also plans to use Google cloud infrastructure and the Tezos blockchain to host and deploy RPC (Remote Procedure Call) by the firm and developers.
At that, the XTZ bulls sprang into action and drove the price up by more than 13% to where it is right now, which is close to $1.43. The market capitalization is approaching $1.5 trillion while the trading volume increased by more than 150%. The price is anticipated to retain a significant upsurge for a longer term with ongoing positive momentum.
A TECHNICAL OVERVIEW OF TEZOS TOKEN
After testing the upper resistance of the wedge, the Tezos price has been trading within a rising and expanding wedge and is now encountering rejection.
The effect seems to have started and is anticipated to approach the bottom support at $1.3 as the widening wedge is negative.
A bearish crossover of the MACD is going to occur, which might support the idea of an oncoming decline.
In addition, the volume has also been severely reduced and controlled by the bears. While a potential bullish reversal after testing the temporary support at $1.3 may be anticipated
Analysis of the Tezos Token on Chain
The popularity of the project serves as a barometer for the platform’s demand. The platform’s popularity is fueled by mentions, engagements, forecasts, postings, and other activities. Overall weighted feelings take into account all of these postings or mentions, whether they are favourable or unfavourable, and contrast them with the frequency with which they occur.
The attitudes towards the token are good or negative depending on whether the estimated statistics are above the average. Given that the values have been fluctuating within the positive ranges for a considerable amount of time, the weighted sentiment of Tezos has been primarily bullish. The increased levels also suggest that market players may be disposed to sell their tokens to realise gains. Thus, the prospect of a negative retreat is present.
RATE OF TEZOS BINANCE FINANCING
The gap between the prices of perpetual contracts and the spot markets is known as the funding rate. Depending on the difference between futures and spot prices, these are the monthly payouts given to either long or short traders. The rates are updated by Binance every eight hours based on the interest rate and the premium.
A perpetual contract’s price is above the listed price if the funding rate is positive; if it is negative, the price is below the posted price. Although long-term traders now have the upper hand and are prepared to finance the short traders, the funding rates are favourable.
In recent days, the price of Tezos has experienced a tremendous uptick, which has greatly increased the positive momentum. Yet, given that the price has displayed a bearish divergence and that the attitude has somewhat changed, there is a chance that the trend may reverse. As a result, the traders were able to take their profits, which caused the price to drop quickly to its temporary support.