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Tezos sees fundamental growth, but the XTZ price chart is showing technical weakness

Tezos wrapped up 2019 on a high note, with the cryptocurrencyโ€™s massive bullishness at the end of the year spilling over into 2020, allowing it to set fresh all-time highs just over a month ago.

Tezos sees fundamental growth, but the XTZ price chart is showing technical weakness
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Tezos wrapped up 2019 on a high note, with the cryptocurrencyโ€™s massive bullishness at the end of the year spilling over into 2020, allowing it to set fresh all-time highs just over a month ago.

It was not, however, able to avoid the intense market-wide bearishness seen throughout the month of March, with the downwards tailwind created by Bitcoinโ€™s decline leading XTZ to plunge well over 50 percent from its recently established highs.

It is important to note that the cryptocurrency has shown some signs of fundamental growth throughout the past month, with the Tezos Foundation moving to settle all of the class action lawsuits that had been looming over them ever since the XTZ ICO in 2018.

Tezos foundation settles lawsuits, attempts to nullify claims that XTZ is an unregistered securities offering

Per a recent update directly from the Tezos Foundation, the development group behind one of the largest ICOs in history, they are now moving to enter a settlement with all of the class action lawsuits that they faced as a result of their 2018 Initial Coin Offering.

The settlement of these lawsuits โ€“ should they be approved by a court โ€“ may bolster XTZ from a fundamental perspective, as it will temporarily put to rest claims that the crypto is an unregistered security.

The Foundation notes that they believe the settlement of these lawsuits is in the best interest of the Tezos project and community, citing them as being a costly distraction.

โ€œThe Tezos Foundation chose to settle all claims because the Tezos Foundation believes it is in the best interest of the Tezos project and community as a whole.โ€

They further claim that the lawsuits against them were โ€œmeritlessโ€ and they continue to deny any wrongdoing, and it is possible that this move will help boost investorโ€™s confidence that the project wonโ€™t run into any regulatory issues in the near-term.

XTZ may be fundamentally strong, but itโ€™s still showing signs of technical weakness

Teddy โ€“ a prominent cryptocurrency analyst on Twitter โ€“ explained in a recent tweet that he believes investors will soon be able to โ€œscoop up [Tezos] at a major discountโ€ due to the degradation of its current support.

โ€œXTZ: Religiously monitoring thisโ€ฆ Testing, testing and retesting this support. Hopefully it is getting increasingly weaker – would love to scoop up some at a major discount. In my opinion one of the first to move once the market stabilizes.โ€

Tezos XTZ Crypto
Image Courtesy of Teddy

If Tezos does see a significant near-term decline, it is possible that its strengthening fundamentals will make the downwards movement short-lived.

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Posted In: , Adoption, Analysis
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