The central theses
- In the last 24 hours, more than 5.37 million Tezos-related engagements were registered on social media.
- The surge in social interactions seems to be related to a number of new features that Tezos-based DAOs support.
- XTZ’s market value has rallied more than 33% after a sharp correction and could be ready for more upside momentum.
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Tezos (XTZ) appears to be leading recovery in the cryptocurrency market after a development team announced that users will soon be able to create DAOs on the blockchain.
Tezos is expanding to meet the demands of the market
At Tezos, the market value has fallen by more than 20% in the last 24 hours. XTZ plunged from a high of $ 2.90 to a low of $ 2.30, generating close to $ 1.80 million in liquidations across the board.
As prices fell, the number of XTZ-related mentions on various social networks skyrocketed. LunarCRUSH had over 5.37 million social engagements, an increase of 157%.
The positive vibe seems to have something to do with the newly announced Homebase project, which will allow anyone to create decentralized autonomous organizations (DAOs) on the Tezos blockchain. DAOs allow attendees to create and vote on community proposals, a feature already seen in several other blockchains.
The news was welcomed by the cryptocurrency community and served as a catalyst for the recovery of XTZ.
Tezos will recover immediately
The rise in Tezos’ social media visibility appears to have encouraged market participants to take advantage of the downward price movement by buying XTZ tokens at a discount. The significantly increased buying pressure enabled XTZ to offset all losses incurred and to increase the market value by more than 33%.
From a technical standpoint, Tezos rebounded from the middle trendline of a descending parallel channel that has formed on its daily chart since late April 2020.
Every time XTZ has climbed to the upper bound of this technical formation since then, it has been rejected and traced to the middle or lower edge of the pattern. From that point on, it tended to recover, which is consistent with the properties of a parallel channel.
A further increase in demand for Tezos around the current price level could make it possible to finally break the station’s upper trendline. Breaking this significant resistance barrier increases the likelihood of another 39% rally towards XTZ’s previous all-time high of $ 4.50.
It is worth noting that the bullish outlook will only materialize if Tezos converts the USD 3.20 resistance into support. Otherwise, a rejection may result, sending the price of the cryptocurrency to retest the channel’s median trendline at $ 2.20.
At the time of writing, this author owned Bitcoin and Ethereum.
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