XTZ Price Analysis: XTZ Steadies Above Key Psychological Level; Tezos Set To Undergo Its Most “Transformative” Update

• Tezos (XTZ) is up 2% in the last 24 hours as its price steadies near psychological $1 mark
• A whole new level of scaling capabilities within the Tezos network and beyond are expected to be introduced with the Mumbai upgrade plan
• This is one of the most “transformative” updates for the well-known proof-of-stake blockchain

Tezos (XTZ) is up 2% in the last 24 hours as its price steadies near psychological $1 mark. A whole new level of scaling capabilities within the Tezos network and beyond are expected to be introduced with the Mumbai upgrade plan, which was presented by Nomadic Labs, the top blockchain developer in the Tezos community. This is one of the most “transformative” updates for the well-known proof-of-stake blockchain, according to Tezos co-founder Arthur Breitman. The main features made public by Nomadic Labs include the activation of smart rollups, the introduction of Epoxy on Mainnet, which will further strengthen instant finality due to SNARKs proof-of-validity, a 15-second block time reduction, ticket transfers between accounts, and the addition of two new RPC endpoints for better visibility into ticket ownership. All of these improvements are anticipated to significantly increase scalability, resulting in more productive transactions and processing power for Tezos network users. The faster transaction assurance and extensive ticket transfer functionality between user accounts will both depend on the reduced block time feature.

Key Levels
Resistance Levels: $2.00, %1.50, $1.00
Support Levels: $0.92, $0.70, $0.500

XTZ/USD Daily Chart: Ranging

XTZ/USD Daily Chart

Following a brief consolidation, XTZ/USD recorded a mild retracement after breaking above the $1.00 barrier to approach daily moving average (MA 200). The near-term oscillators are supporting the move higher, with the RSI strengthening inside the bullish zone despite the lack of confirmation of overbought conditions.

If buying demand remains strong, initial resistance might come from the $1.50 level before the bulls target the $2.0 handle. If the price falls below the psychological level of $1.00 and approaches the previous range low of $0.70, a critical support zone could form between the $0.70 and the daily MA 50 at $0.90. Tezos aims to return to an ascending trend pattern.

XTZ/USD 4-Hour Chart: Ranging

XTZ/USD 4-Hour Chart

XTZ/USD recorded fresh selling above the 4-hour moving average (MA 50) near the $1.08 level, extending its retracement impulse to a new low of $0.964 on Wednesday. The market’s enthusiasm pushed the RSI into the overbought zone, while the indicator showed no symptoms of weakness.

Currently, the price appears to be under pressure near the $0.950 mark. If the bulls take that level, the path to $1.50 and $2.00 will open up. Higher, the surge could go to the $2.50 level. On the downside, initial constraints may arise near $0.90, a break of which may result in some consolidation near the MA 200 at $0.825. The $0.70 low and the neighboring MA 200 at $0.825 may also be important levels to monitor.

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