• Tezos price holds Ichimoku cloud, but rebounds remain limited.
  • Daily Relative Strength Index (RSI) is showing a negative momentum divergence at the last two highs.
  • XTZ’s sixth upgrade, codenamed Florence after the iconic city in Italy, went live today.

Tezos price has underperformed many altcoins in 2021, taking a staircase path rather than impulsive bursts higher. XTZ has held vital support since March, setting the foundation for a new attempt at all-time highs.

Florence optimization makes Tezos synonymous with innovation

Florence, the new upgrade comes only three months after the previous upgrade, Edo, and follows rapid growing interest and engagement with the Tezos ecosystem tools and projects. At the core of the notable spike in interest is the evolving realization that the platform can meet the NFT needs of high performance, rapid evolution and low carbon footprint.

Tezos is also becoming popular for decentralized finance (DeFi) applications due to the quick transaction times, competitive transaction fees and improved ability to scale.

The Florence upgrade introduces minor bug fixes and improvements, and meaningful changes include increased size of smart contracts, gas optimization, and removal of test chain. 

In particular, gas optimization is geared to improving speedups and efficiencies for smart contracts but at a lower cost.

Overall, the gas arithmetic is also sped up by a factor of ten, increasing overall performance of a typical execution cycle of the Michelson interpreter in Florence by 35%.

It is evident with the sixth upgrade that Tezos is moving quickly to support the expanding network activity by ensuring that the platform is optimized, fully reliable and most importantly, full-featured. 

Tezos price continues to wait on a bullish stampede

Tezos price has discovered price support at the daily Ichimoku cloud four times since the April 23 test, each leading to modest rebounds and a new all-time high. However, the all-time high did not generate any price traction, keeping the precedent of limited new highs followed by corrections.

Since the April 23 low, the volume profile has been consistent with accumulation and indicates that Tezos price is on the verge of a new high. The magnitude of the new high is unknown, but using the Fibonacci extension levels and the April high as precedent, Tezos price can be estimated.

The April high coincided with the 161.8% Fibonacci extension of the February decline at $7.38. In the case of the April decline, the 161.8% extension would yield a price target of $9.92, representing a 40% gain from the price at the time of writing.

XTZ/USD daily chart

XTZ/USD daily chart

On the daily chart, the RSI is flashing a negative momentum divergence. It occurs when the RSI doesn’t print a new high along with the price. In this case, it could limit the potential for a new high, but it could also signal a deeper correction for Tezos price in the coming days.

Some support will unfold at the 38.2% retracement of the rally beginning the end of December at $5.81, but the pivotal support comes at the lower line of the Ichimoku cloud at $5.32, followed by the 50% retracement at $5.00.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP