The Tezos price has been on a sharp decline for the past few days. The XTZ coin has been among the worst performers in the crypto market alongside Solana, Polkadot, Terra, Chainlink, and many others. In the last seven days, Tezos has declined 35% and more than 5% in the last 24 hours. It has a total market capitalization of $4 billion. It ranks as the 31st largest cryptocurrency in the world.
Tezos is a smart contract and decentralized application platform. A smart contract is a self-executing contract with the agreement terms written directly into the line of code. Smart contracts allow the performance of credible transactions without third parties.
Just like most altcoins, the XTZ price has been in the red for the past two weeks. The coin jumped more than 100% in August only to hand back the gains in the following month. Some analysts have linked the decline of most altcoins, including Tezos, to the SEC outlook on cryptocurrencies.
Last week, Chairman Gary Gensler of the US Securities and Exchange Commission (SEC) stated that many DeFi tokens were trading as securities and thus needed regulation. On September 20, SEC threatened to sue Coinbase Global, the second-largest crypto exchange in the world, if they continued pursuing their plans to introduce cryptocurrency lending.
The uncertainty of the performance of the crypto market still lingers while investors closely watch the Tezos price to see where it is headed.
Tezos Price Technical Analysis
The daily chart shows that the Tezos price has been on a strong bearish run for the past few weeks. At the time of writing, it was trading 5.61% higher at $4.948. It is moving below the 25-day and 50-day exponential moving averages. It is also moving along the 50-day moving average.
In the near term, I expect the XTZ price to fall in line with the overall cryptocurrency performance. A move past the 25-day EMA will have the bears targeting the next resistance at $5.870.