Tezos taps into non-fungible tokens market sending XTZ price close breakout

 

• Tezos price awaits a bullish breakout as it trades under a critical resistance barrier at $3.15.
• A 40% surge in market value is on the horizon if the bulls manage to slice through the supply wall ahead.  
• XTZ could retest previous all-time highs (ATH) and print a new one, but it will all depend on its ability to breakout.

Tezos price has been contained within a consolidation pattern that began to take shape since May 2020. Despite the lackluster price action, the token's utility is about to expand, which may help revive the bullish sentiment behind it.

Setting foot in the NFT market

Although the concept of verifiable digital scarcity isn't new, the non-fungible token (NFT) market made headlines in 2020. Indeed, Picasso's 'Bull NFT' art fetched a staggering $55,000. 

NFTs are similar to real-world collectibles, such as Pokemon cards, but they come in a digital version. Such a niche market sector has the potential to grow far beyond its real-world counterpart. 

In the past week alone, $6.3 million worth of NFTs were traded, with Ethereum's ERC-721 tokens being the long standard for this new asset class. But with the upcoming launch of Kalamint, the Tezos blockchain will be able to host an NFT-based marketplace. 

The recent announcement reveals that the project will officially kick off on February 18, unveiling a new art collection. It is worth mentioning that the first set of NFTs on top of the Tezos protocol is set to go live three days before the official launch.

Considering the millions of dollars being traded within this space, the buzz created by the first NFT-based project on Tezos has pushed this token towards a critical resistance barrier. If buying pressure continues to mount, XTZ price may breakout and retest previous all-time highs.

Tezos price must crack $3.15 to enter a new bull rally

Ever since Tezos price failed to sustain its ATH of $4.49 on August 13, 2020, it entered a massive downward trend. XTZ's market value dropped by more than 65% to hit a low of $1.54 in late December 2020.

While this cryptocurrency managed to recover some of the losses incurred throughout Q4 2020, it has failed to make higher highs. Such market behavior led to the formation of a descending parallel channel on its 3-day chart. 

Now that Tezos price is currently trading around the channel's upper boundary, it could either break through it or get rejected. 

XTZ/USD 3-day chart

By slicing through the 61.8% Fibonacci retracement level at $3.15, the odds for a 42.50% upswing will increase drastically. If this were to happen, Tezos price would aim to retest the previous ATH at $4.49.

XTZ/USD 3-day chart

A reduction of bullish momentum coupled with increased selling pressure could invalidate the optimistic outlook. If Tezos price fails to move past the $3.15 resistance, a rejection could be triggered, pushing it towards the channel's middle of the lower trendline. These support levels sit at $2.00 and $1.45, respectively.