The Tezos price took a sharp nosedive earlier on Thursday after jumping to its highest level in four months. The XTZ coin jumped 28.50% on Wednesday to $5.40, which was in line with analysts’ predictions. Its total market capitalization currently stands at $3.97 billion. The altcoin ranks as the 37th largest cryptocurrency after Klaytn.
XTZ Price Action
The Tezos Community is one of the fastest growing in the cryptocurrency market. This was demonstrated last month when the Tezos network received more than 10 million contract calls following its Granada upgrade.
Tezos is one of the fastest growing blockchain platforms due to its energy efficiency, security, and community governance. Its exceptional blockchain has attracted partnerships with high-profile companies such as Red Bull Racing, one of the biggest teams in Formula 1, and McLaren.
The XTZ price has jumped more than 135% from its lowest point in June and July. However, it is still 46.23% below its highest level this year in May.
The coin was hovering past the crucial level at $5.0 after Golden Goals launched on the Tezos network. Golden Goals is a football club NFT merchandising platform. The platform aims at monetizing fan support for smaller clubs by including a mechanism that allows fans to give back directly to their clubs through crypto.
Despite its rally, the Tezos network still faces significant challenges. Just like most altcoins, Tezos’ biggest challenge is Ethereum’s dominance. Being the world’s biggest blockchain, Ethereum dominates the blockchain industry.
Tezos Price Analysis
The daily chart indicates that the Tezos price has been on an up run for the past month. At the time of writing, the coin slipped nearly 10%. It hit an intraday high of $5.123 before pulling back to $4.57.
It is trading above the 50, 100, and 200-day moving averages, hinting at a bullish outlook. Along the way, it has formed a double bottom pattern which is a bullish indicator.
Therefore, the XTZ price is likely to continue with its bullish trend as bulls target this year’s highest level at $8.442. However, a move below the 100 DMA will invalidate this view.