Tezos (XTZ) Price Struggles, Can Rising TVL Aid Price Action?

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Tezos (XTZ) price is still trading close to its lower long-term support level at the $1.30 mark; But with developments happening in its ecosystem, XTZ investors are hopeful of a breakout. 

Over the last week, Tezos price broke below the multi-year support line of $1.35. Even though XTZ’s price tried to make a few bullish strides, bears remained in control, with the larger price trend predominantly tilting towards bearish since Sept. 12. 

Tezos (XTZ) price continues consolidation 

Tezos price noted a 25% pullback in August, followed by another 15% pullback in September. From a technical point of view, XTZ price flashed bearish signals, as the Relative Strength Index showed sellers were dominating the market. 

XTZ/USDT daily chart | Source: Trading View

On the daily timeframe, XTZ price remained well below its key resistance level of $1.5, despite bouncing off its weekly low of $1.35 on Oct 17 and 18. 

A recent Messari report presented that during Q3, Tezos recouped some of the losses with a 31% bear market rally. However, the 31% price gains didn’t hold due to the larger crypto market’s bearish momentum. 

Notably, throughout Q3, revenue-centric metrics for Tezos were down substantially as XTZ’s revenue dived to $191,000, presenting a 60% drop QoQ. XTZ had a circulating P/S ratio of 2,181x, while transaction fees saw a 58% drop. 

XTZ’s TVL and development activity spark hope

Tezos released the 11th protocol on September 23, while its next protocol upgrade is scheduled for mid-Q4. The next upgrade is set to introduce Smart Contract Optimistic Rollups (SCORUs). 

Notably, the developments in Tezos’s ecosystem have been reflected in the coin’s development activity which is in a considerable uptrend. Even though the price continued to consolidate, the coin’s development activity started rising on Oct. 14. 

Source: Santiment 

However, low social volumes and a negative weighted sentiment presented that there was not much noise around the project. 

Nonetheless, a bullish trend could be seen in XTZ’s DeFi total value locked (TVL) as TVL appreciated by almost 185% from $14 million to $40 million in a matter of 10 days. 

Source: Defilama

A rise in TVL could be indicative of institutional interest rising in the project and could act in favor of XTZ bulls. 

Going forward, if XTZ price breaks and holds above $1.50 resistance, a good retail push can send the coin to as high as $2. However, an invalidation of the bullish thesis can send XTZ price down to the lower $1.2 price range.

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