We are approaching the end of 2019 with the market very busy, in recent days we saw bitcoin make a surprising downward move that took most players by surprise, the altcoins followed the same pace, for some this means a big loss, for others an opportunity to buy and accumulate more (and that's how I see it now). When it comes to hold, I have a habit of looking at the project behind the coin (which I find unnecessary when it comes to swing trade or scalping), in this article I want to take a quick look at Tezos, cryptocurrency I'm holding and intend to continue for approximately two years, explaining why the project is useful and how the chart shows optimism.
Tezos is a distributed blockchain platform for smart contracts and decentralized applications. You may be wondering what differs from Ethreum, although conceptually very similar, Tezos has developed a blockchain that can self-manage through chain governance and automate upgrade processes. Thus, unlike Ethereum, out-of-chain governance is not necessary in the sense that a small group of core developers decide alone on future protocol changes, so users can participate in protocol development by voting on the proposed changes. by independent developers and it also prevents hard forks from happening.
The currency adheres to Liquid Proof of Stake (LPoS), which as mentioned above, allows XTZ owners to delegate validation rights to other token owners. Unlike other projects, Tezos has voluntary delegation, this means that there is no maximum number of block producers and each one can decide for themselves whether or not to vote and the requirements for Tezos are much lower than other DPoS projects, with the protocol requiring 10,000 XTZ, good OPSEC and low computational power.
LPoS also allows you to "stake" your tezos, periodically receiving more coins for stopping them in order to validate blocks which is an excellent way to passively receive more complexes while still maintaining the appreciation given the future potential.
At the moment there are 660,373,612 out of a total of 801,312,599 total currencies showing at the time this item is being produced 3% of the total market capitalization. These characteristics make the currency deflationary as well as many other projects already known, so the natural tendency is that when the maximum of currencies is reached the price has constant appreciations.
From this brief description one can already imagine why I am very excited about the project, now let's quickly see a graphical analysis that shows us the long term currency:
Here we can see very important signals being hit, as the 200-period moving average (red) sustains the price and the 55-period moving average (purple) about to cross the 100-period moving average (white) that may help the price continue This recent rise, another very important aspect that must be taken into consideration is that during this bitcoin meltdown, the price of complexes continued to rise consistently, which shows relative independence that we do not see in the major currencies of the market.
Another important aspect is that the volume inflows now in the currency are the largest ever recorded, indicating that new capital is coming in.
From the weekly chart we can see that he is starting a wave 3 in the elliot wave count, so by symmetry it can lead us to a shorter wave giving us room to believe that the price will stop at $ 2.50 or an extended wave that takes us to something close to $ 4.50. If the price really breaks this resistance at $ 2.50 the possibility of making a quick move to the second target is huge.
Thank you for reading :D