Tezos (XTZ), a smart contract blockchain built with formally verifiable code, has seen its price surge over 47% over the last two weeks, and analysts are pointing out long positions on the cryptocurrency are still “sky high.”
According to CryptoCompare data, the price of XTZ has moved from little under $2.8 at the end of July to over $4.15 at press time, after the cryptocurrency’s price failed to surpass the $4.5 mark earlier this week. While Tezos’ price failed to breach the resistance set at $4.5, Brave New coin analyst Josh Olszewicz pointed out that long positions on Bitfinex greatly outnumber short positions.
Data shows that there are about $1.77 million worth of outstanding long Tezos position on popular cryptocurrency exchange Bitfinex, opposed to less than $300,000 worth of short positions, showing traders believe the cryptocurrency’s price will keep on rising.
While cryptocurrency-related headlines have been dominated by the rise of decentralized finance and the network congestion Ethereum is enduring because of it, XTz has been quietly moving up. The cryptocurrency’s price surpassed the $3 mark shortly after it celebrated its 2-year anniversary, and according to Olszewicz could be moving towards $5 before entering overbought territory.
In a tweet published earlier this month, the cryptocurrency analysts revealed Tezos’ moving average suggests it will enter overbought territory when it goes over $5.2. The network could soon start grabbing some of ETH’s market share, as it also supports smart contracts and decentralized applications, and already uses a Proof-of-Stake (PoS) consensus algorithm.
It’s worth noting that last month China’s state-backed blockchain-based Service Network (BSN) integrated six public blockchains, including Ethereum, Tezos, NEO, EOS, and others. From August 10, developers on these blockchains started being able to build dapps and run nodes using data storage and bandwidth from BSN’s data centers.
Featured image via Pixabay.