TEZOS (XTZ) Price Prediction for 2021: Can Three White Soldiers Lead Push it to $10? - FX LeadersFX Leaders

TEZOS (XTZ) Price Prediction for 2021: Can Three White Soldiers Lead Push it to $10?

Last updated on Mon, May 10, 2021 by
Arslan Butt • 5 min read
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MARKETS TREND

Tezos – Forecast Summary

Tezos Forecast: H1 2021
Price: $6 – $8
Price drivers: Crypto market sentiment, Elon Musk’s comments on cryptos, EDO Upgrade
Tezos Forecast: 1 Year   
Price: $10 – $15
Price drivers: Tezos upgrades, Recovering global economy
Tezos Forecast: 3 Years   
Price: $50 – $100
Price drivers: Crypto market sentiment, DeFi Adoption by investors and users, Tezos Upgrades, Global politics

 

The cryptocurrency Tezos has shown a dramatic bullish trend recently. Considering the performance of the past month, the XTZ/USD pair has gained +$ 0.37, soaring nearly 1.76%, to trade at $ 5.71330. Over a period of six months, the XTZ/USD pair has gained +$ 3.69 or 64.75%, while the pair has reported a dramatic gain of +$ 2.871, or 283.54%, on the yearly time-frame. Currently, the XTZ/USD Live Price chart suggests that TEZOS (XTZ) is trading at $ 5.710. The market cap of Tezos is USD 4,354,487,779, and currently, 248,507,281 in XTZ are circulating. 

Tezos (XTZ) is one of the smartest contract platforms that has a couple of unique features. Kathleen Breitman, the Co-Founder and CEO at Tezos, states it’s strengths is that Tezos is a decentralized, open-source blockchain network that can perform peer-to-peer transactions and serve as a platform for deploying smart contracts. Tezos is also known as tez or tezzie, which has the symbol XTZ. XTZ had a market capitalization of about $1.6 billion so far, which makes it the 18th most precious cryptocurrency in the market. Apart from this, the Tezos has one more unique feature, which is called the Proof of Stake (POS) consensus mechanism. Proof of Stake (POS) enables users to confirm transactions without the troubles of mining, which requires expensive hardware and technical expertise.

Let me explain to you that the Proof of Stake (POS) has been gaining a lot of ground over Proof of Work (POW) recently. Thereby, Tezos is the most successful cryptocurrency to offer staking. The popularity of staking could be considered as one of the leading factors that tend to underpin the Tezos value. That was witnessed after Tezos got significant support in 2019 and 2020 compared to the rest of the market. The price of Tezos surged more than expected between October 2019 and February 2020 and reached record highs.

From the historical point of view, Tezos, proposed by the husband and wife team of Arthur and Kathleen Breitman, raised the equivalent of $232 million in an initial coin offering in 2017. It is worth mentioning that it was Arthur who first introduced the idea for Tezos, all the way back in 2014. That’s why they are the two most important characters on the Tezos team. He started by publishing a white paper that laid out the foundation for the Tezos cryptocurrency. Afterward, his wife Kathleen joined the project and they created Tezos.

 

Current XTZ/USD Price: $

Recent Changes in the Tezos Price

PeriodChange ($)Change %
1 Month+0.37+1.76%
6 Months+3.69+64.75%
1 Year+2.871+283.9

TEZOS Live Chart

XTZ/USD

Tezos (XTZ) Price Prediction for the Next 5 Years

Tezos coin was meant to be launched after its successful ICO but there was some legal security issue in the U.S. that was seen as one of the key hurdles during the launch. These issues took some time to settle. To resolve these all legal issues., the foundation hired one of the best auditors from PwC.  Tezos (XTZ) was launched by the end of 2018 and the token price at the time of ICO was approximately 0.47 USD. The prices of Tezos started to take some bullish positions, and the coin succeeded to get its position back to $1.08 from $0.4. It’s worth mentioning that the highest recorded price of Tezos XTZ was nearly $12.19. 

There would be a large change in Tezos prices after the year ends. The prices can hit around $10.82 after the year ends. Tezos has been facing losses since the previous year. The total drop % was approximately 16%. As of now, the price of 1 Tezos (XTZ) is $5.29. It is expected that the Tezos price will recover during 2021. The price can go up to around $8, which is almost a 30-80% rise from its current price. By the end of 2021, Tezos XTZ could be worth around $12.10, an improvement of 134% on its current amount. The source believes that the price of Tezos is expected to be $20.01 in 2023. The price will be approximately USD 50.06. This means that the current price has risen by more than 825%.

Factors Affecting Tezos Price:

Many cryptocurrencies are currently uncontrolled by governments and central banks. If there would be some changes in the coming years, it could have an impact on the value of Tezos.

Supply and demand – One of the key factors that influence the cryptocurrency price is supply and demand. The higher the demand and lower the supply, the higher the price. Conversely, if demand is low and supply is high, the prices of the coin will decrease.

The supply of cryptocurrencies is limited. Moreover, over time it starts to slow down. Therefore, the demand for assets will likely exceed the available amount. The demand for individual cryptocurrencies may vary greatly. This in turn is influenced by a multitude of other, specific factors that distinguish a given virtual coin from others.

 Mining – Cryptocurrencies do not come from anywhere, but Crypto miners extract them by using specialized equipment called excavators. This method becomes more difficult day by day. If the cost of extracting virtual currencies rises, it tends to underpin the prices of the coin.

Rules and regulations – The rules or requirements introduced by national authorities also leave a notable impact on cryptocurrencies. If the rules become quite restrictive, it may leave a bearish impact on cryptocurrencies. Conversely, if they speak kind words of the crypto industry, it will have a bullish impact on cryptocurrencies.

 Power of the media – Media is seen as one of the key tools that can help or harm cryptocurrencies. They are considered a type of spindle that drives moods among investors. Normally, the good news will leave a bullish impact on it, while bad news can cause panic, which leads to a quick fall in cryptocurrencies. 

Financial crises – The cryptocurrency prices also rely on the economic situation in the concerned countries. If the country’s financial system starts to fall, people start to panic and run into other assets. 

Technical Analysis – Bearish Correction in Play, Brace to Capture Buying 

The technical side of XTZ/USD is exhibiting a strong bullish bias on the weekly chart. Tezos has closed a spinning top candle on the monthly time-frame that is suggesting weaker bullish sentiment among investors. The pair has tested a high level of 7.67 level, and closing of the spinning top candle below this level is suggesting chances of bearish correction in Tezos.  That being said, the pair has exhibited a bearish correction, achieving 50% Fibonacci retracement at 4.6 and 61.8% Fibonacci retracement at 3.9 level. 

XTZ/USD Monthly Chart

XTZ/USD- Monthly Time-frame – Bearish Correction

Lately, the XTZ/USD pair has closed a bullish engulfing candle on the weekly timeframe that is suggesting chances of a bullish trend in the pair. A bullish breakout of the pair has triggered dramatic buying until $5.7. Although the pair shows a bearish correction right now, the odds of continuation of the bullish trend remain pretty solid. 

On the higher side, the XTZ/USD pair may face immediate resistance at the $7.67 level, which is extended by a previously placed all-time high level. A bullish breakout at the $7.67 level can drive further buying in the pair until the next resistance levels of $9.10 and $10.70. The 20 periods exponential moving average is supporting an upward trend in Tezos. The weekly MACD and RSI suggest a strong bullish bias in Tezos; therefore, a bullish breakout at $7.67 can lead XTZ/USD towards the $10.70 level, extended by a 161.80% Fibonacci extension level. XTZ/USD Weekly Chart

XTZ/USD – Weekly Time-frame – Upward Channel 

Taking a look at the daily timeframe, the XTZ/USD pair has entered the oversold zone, and it is now heading higher amid profit-taking by investors. On the higher side, the Tezos is pretty likely to go after an immediate resistance level of $6.24, whereas a bullish breakout of 0.2964 can drive more buying until the $7.67 levels, which are extended by 50% and 61.8% Fibonacci retracement levels respectively. Overall, XTZ/USD is likely to continue trading bullishly, as the leading and lagging indicators support a buying trend. A series of exponential moving averages, such as the 20, 50, and 100 periods EMA, support the pair at around $5 and $3.4. Let’s consider staying bullish above the $5 area, to hit long-term target levels of $10.40 and $17.45. Good luck.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.