Tezos XTZ surges 25% in week driven by DeFi innovations

Tezos’ XTZ price has surged by 25% over the past week, driven by the launch of Etherlink Layer 2 and innovations in decentralized finance (DeFi). This bullish momentum has positioned Tezos among the top gainers, with a daily increase of over 8%. The price action has broken through key resistance levels, currently trading at $0.7775, up 8.05% from the previous day. The market capitalization has also risen to $824.24 million, reflecting heightened trader participation and renewed enthusiasm.

The recent price surge is supported by a robust rebound in Tezos’ DeFi activity. The Total Value Locked (TVL) in Tezos’ DeFi ecosystem has climbed 8% to $45.43 million, indicating renewed confidence and increased capital inflow. This uptrend in TVL aligns with the success of Etherlink and Mida’s tokenized offerings, which have attracted $11 million in TVL and boosted market confidence.

Technical analysis reveals that Tezos has decisively broken out of its previous consolidation range. The price action has catapulted XTZ from a low of $0.6837 to a 24-hour high at $0.8212. The next hurdle for XTZ sits at $0.80, with a visible resistance band extending to $0.85. Key support is established at $0.7179, and any retracement towards this level may attract buyers who missed the initial breakout, provided the overall bullish structure remains intact.

Institutional interest in Tezos is growing, driven by Mida’s innovative tokenized products. This increased attention from institutional buyers has further fueled the bullish rally, contributing to the surge in price and volume. However, analysts caution that overbought signals suggest a potential short-term correction, and traders should exercise caution despite the robust momentum.

As Tezos continues to make headlines with its impressive price action, the focus remains on whether the momentum can sustain or if a short-term correction is imminent. The next resistance levels at $0.80 and $0.85 will be crucial in determining the short-term price trajectory of XTZ. Key support at $0.7179 provides a safety net for any potential retracement, but the overall bullish structure will need to remain intact for the rally to continue.