Tezos prediction as token sets $2.26 as the next frontier

• Tezos may face competition after Ethereum PoS merger.

• Native XTZ token has reversed resistance at $1.68.

• The token is bullish with $2.26 set as the next price level.

Tezos XTZ/USD is a proof-of-stake smart contract blockchain. This is one of the networks called Ethereum Killers. This protocol is known for cheap and fast transactions with the ability to evolve. Tezos’ native XTZ token will be used for governance and utility.

Basically, Tezos could face more competition due to the upcoming Ethereum PoS migration. Merge aims to increase efficiency with less energy consumption on the second largest blockchain. A decline in DeFi, dApps, and NFT activity could affect the total value of XTZ price and locked projects.

Currently, the total amount of Tezos locked is $32.12 million. TVL is much lower compared to the largest DeFi protocol, MakerDAO. His TVL for the latter is over $8 billion. Additionally, Tezos has suffered a decline in the number of NFT projects it supports following a slowdown in the sector.

Despite the pessimistic forecasts for XTZ, the token has made impressive profits year-to-date. From lows, his market capitalization jumped 56% to $1.7 billion. XTZ is currently trading at $1.96. It is up 6.92% over the past day and up 8.86% weekly. The technical chart below confirms Tezos’ bullish trend.

XTZ Reverses $1.68 Resistance

Source: Trading View

From the daily chart above, XTZ has moved away from the June low of $1.26. The trend of higher highs and higher lows has pushed the token above the $1.68 resistance. Bullish momentum can be seen at the 20 and 50 day MAs. Both averages are currently holding as support.

MACD shows weakness, but momentum indicators remain bullish. The next frontier could see him heading towards $2.26 if XTZ can get enough buyers.

in conclusion

Tezos fundamentals are weakening due to the expected Ethereum merger and NFT cooloff. The token is currently targeting $2.26 which is acting as the next resistance level. Most indicators are in line, so an investor should hold XTZ as long as his XTZ stays below the resistance level.