- Tezos retreats from record highs as massive losses linger in the near term.
- Tezos testing a new network protocol with the capability of shorter block times.
- Defending the ascending channel support could see the resumption of the uptrend.
Tezos has had a steady run-up since the beginning of March. February's minor hiccup was erased, allowing bulls to reach new all-time highs of $7.5. However, the recent upswing in price has been curtailed by increased seller dominance. At the time of writing, XTZ dodders at $6.4 despite the developers testing a new protocol, likely to bring down the time taken to process a block of transactions.
Tezos Trialing New Consensus Algorithm
The smart contract platform has announced that it is testing a new consensus algorithm referred to as 'Tenderbake." This protocol was first mentioned as a blockchain synchronizer in a blog post released in January. Developers are using Tenderbake in the latest Tezos testnet, but the process is at the testing stage to identify potential errors and optimize performance.
According to Tezos, Tenderbake can achieve shorter block times, ensuring near-instant finality. Its block times average utmost one second, which means that it would be a significant milestone from the current Emmy+ consensus algorithm. Once the upgrade has been completed, Tezos will be par with Visa's transactions per second (TPS).
Tezos Hunts for Formidable Support
Tezos holds above the ascending parallel channel's middle boundary support at writing. This support is needed to resume the uptrend; however, if the bearish leg extends, XTZ might mark the beginning of a downtrend.
Losing the channel's middle-level support could trigger more losses, paving the way for Tezos to test the massive anchor zone at $5.5.
The Moving Average Convergence Divergence (MACD) adds weight to the bearish outlook after hitting a barrier and retreating toward the midline. If the MACD line (blue) crosses under the signal line, bears will gain more traction.
XTZ/USD Daily Chart
Tezos Bullish Outlook
The daily SuperTrend indicator suggests that the uptrend is still in the cards and is not above to disappear. This indicator reveals an asset's general trend, whether upward or downward. Fliping below the price and changing from red to green is a bullish signal.
XTZ/USD Daily Chart
The applied moving averages' positions also reveal that bulls are generally in control. The 50 Simple Moving Average (SMA) gap above the 100 SMA and the 200 SMA confirm this bullish notion.