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Analyst Says Tezos Could ‘Get Pretty Ugly’ While XTZ Shorts Climb To An All-Time High

Analyst Says Tezos Could ‘Get Pretty Ugly’ While XTZ Shorts Climb To An All-Time High
By AnTy- February 12, 2020
XTZ up 778% in the past year, surging to a new high of $3.40
Baking and stable protocol pushing the prices up but more people entering the market creating a “snowball effect”
Baked XTZ has no lock-up period and shorts are climbing to ATH, so a reversal expected that has the potential to get ugly
Tezos has been a hot cryptocurrency since last year where it jumped 778%. So far in 2020, we are up 140% leaving bitcoin’s gains in the dust.

$XTZ +%100 soon

— Looposhi (@22loops) February 9, 2020

Today has turned out to be yet another amazing day for XTZ as the digital asset jumps over 20%, making a new high at $3.40. In the past month, XTZ surged 94% against BTC and 40% against ETH.

Tezos again leading the pack on this last swing.

Check out the gold line starting its ascent several before the others…

— Mati Greenspan [tweets are not trading advice] (@MatiGreenspan) February 11, 2020

The record ICO making record gains
A record-breaking initial coin offering (ICO) in 2017, the project collected $232 million and officially launched in Sept. 2018. The Tezos blockchain uses a native-middleware called “Network Shell” allowing them to develop a self-amending ledger.

Its blockchain protocol is divided into three layers; the network protocol is responsible for peer broadcasting between nodes, transaction protocol defines the accounting model implemented by the blockchain, and the consensus protocol helps the chain reach agreements on the state of transactions.

Tezos is a Liquid Proof of Stake system which unlike Delegated proof of stake (DPoS) has no hard and fast rule that delegates the selection. The system requires one to stake a certain number of XTZ to participate in the consensus, a process called baking. The bakers or token holders can delegate their validation rights to other token holders as well without transferring ownership but is optional.

Bakers get the block publishing rights based on their stake and successful bakers get a block reward and get to charge transaction fees for all the transactions inside the block.

Stable Protocol and Baking Pushing XTZ Up
Currently, nearly 80% of XTZ is baked with 15% of all XTZ circulating supply held in exchange bakeries. Coinbase is leading this with over 44% share followed by Kraken (22%), and Binance (15%).

Baking has put a constraint on the supply while demand keeps on rising as the operator “needs to continue to buy more as they go.” This has the XTZ price soaring. However, they have no lockup period so these staked XTZ tokens “can be pulled at a moment's notice.”

Also, with people starting to enter into Tezos due to the appreciating price and the additional stake reward are creating a “snowball effect,” which Mati Greenspan, founder of Quantum Economics notes, says “causing even further momentum on the price.”

While everyone is distracted hyping up #Tron… the real killer is slowly creeping its way up to the top. $XTZ

— ฿TF%$D! (@CryptoHustle) February 9, 2020

While one reason behind this surge is the staking mechanism, the other reason is it protocol that is looking more stable and scalable than some of its competitors, said, former eToro analyst.

But Things Could get Ugly
The price of XTZ can certainly push higher but investor and trader Josh Rager says “based on the chart, I'm not going to FOMO into this (at this point in time). Certainly an asset I'm willing to buy on pullbacks for swing trades.”

250,000 #XTZ (816,996 USD) transferred from unknown wallet to #Kraken


— Whale Alert (@whale_alert) February 12, 2020

Greenspan also issues a word of caution,


Just like Greenspan, these highs certainly had the traders anticipating a pullback as XTZ shorts reached an all-time high. However, trader, Crypto Michaël wishes “everyone all the best

 shorting this.”

However, the google trends for search term Tezos are looking for another big uptrend which is a bullish signal.

Source: Google Trends
XTZ is currently fast approaching $3.50 while leading the market gains. But while the shorts are on the rise, so is the trend for the cryptocurrency, now it’s to be known if we will continue this climb or take a break.

Tezos (XTZ) Live Price
1 XTZ/USD =$3.2548 change ~ 16.25%
Coin Market Cap

$2.26 Billion
24 Hour Volume

$168.73 Million
24 Hour VWAP

24 Hour Change