Why did the price of XTZ fall?

Tezos (XTZ) dropped 2.03% in the last 24 hours, falling to $0.606. This decline was steeper than the overall crypto market, which fell by 1.31%. The main reasons include technical resistance levels and investors shifting away from mid-sized altcoins.

1. Technical Breakdown – Price fell below important support at $0.63
2. Altcoin Weakness – Money moving out of mid-sized altcoins
3. Profit-Taking – After a 2.34% gain last week

Deep Dive

1. Technical Resistance (Negative Impact)

Overview: Tezos’ price dropped below its 30-day average price ($0.637) and 200-day average price ($0.663). The Relative Strength Index (RSI), which measures momentum, is at 42.96, showing weakening buying interest. On October 22, the price tried to bounce back but was pushed down near the $0.70 level, a key technical barrier.

What this means: These signals suggest buyers are losing confidence. The MACD indicator shows a brief positive momentum, but overall, the trend is still weak. This means any price increases might face selling pressure around $0.63 to $0.65.

Key watch: If the price closes below the October 27 low of $0.598, it could trigger automatic sell orders, potentially pushing the price down to the 2025 low of $0.458.

2. Altcoin Sector Rotation (Mixed Impact)

Overview: Bitcoin’s market dominance increased slightly to 59.08%, while the Altcoin Season Index dropped to 27 out of 100, indicating a strong preference for Bitcoin over other cryptocurrencies.

What this means: Investors are favoring well-established cryptocurrencies like Bitcoin amid cautious market sentiment (Fear & Greed Index at 42/100). Tezos’ trading volume over 24 hours was $17.96 million, which is only 2.79% of its total market value, showing low liquidity that can make price drops more severe.

3. Post-Rally Profit Taking (Neutral Impact)

Overview: Tezos gained 2.34% last week, briefly reaching $0.62 on October 22 after the Tezos Foundation announced a partnership with the Museum of Moving Image.

What this means: Traders likely sold some of their holdings near this resistance level to lock in profits. On-chain data shows more coins moving to exchanges, suggesting some holders are preparing to sell during the recent price dip.

Conclusion

Tezos’ recent price drop is mainly due to technical challenges and a cautious market mood, which outweigh positive news like Etherlink’s $70 million growth in total value locked (TVL). Key watch: Whether Bitcoin can stay above $58,000 to boost demand for altcoins, which might help Tezos climb back above its 7-day average price of $0.597.

What could affect the price of XTZ?

Tezos is showing a mix of positive technical momentum and growing ecosystem activity, but it faces challenges from the overall market environment.

1. Etherlink Layer 2 Adoption – Total Value Locked (TVL) jumped to over $70 million, boosting decentralized finance (DeFi) activity.
2. Protocol Upgrades – The Seoul upgrade in September 2025 improved efficiency and security for institutional users.
3. Regulatory Risks – Tokenized uranium (xU3O8) faces complicated regulatory challenges.

Deep Dive

1. Etherlink Growth & DeFi Momentum (Positive Outlook)

Overview: Tezos’ Layer 2 solution, Etherlink, which is compatible with Ethereum’s virtual machine (EVM), saw its TVL increase by 6,200% quarter-over-quarter, reaching $70.14 million by October 2025. This growth was driven by partnerships such as Midas’ tokenized yield products and Curve Finance’s deployment on the platform. Daily transactions reached 20.5 million, and Google Cloud supported developers with $200,000 in credits (Messari).

What this means: More users and developers are attracted to the platform, increasing liquidity and creating a positive feedback loop. If TVL continues to grow beyond $100 million, it could support Tezos’ price at $0.60 and push it toward $1.50.

2. Protocol Upgrades & Governance (Mixed Outlook)

Overview: The Seoul upgrade in September 2025 added native multisignature (multisig) support and cut validation costs by 63 times. However, changes to staking, like the introduction of one-click unstaking with a 4-day unbonding period, could lead to short-term selling pressure (CryptoBriefing).

What this means: While these upgrades make Tezos more attractive for institutional investors, especially for real-world assets (RWAs) like uranium tokenization, the easier unstaking process might cause some holders to sell, potentially testing the $0.55 price support level.

3. Market Sentiment & Competition (Potential Risks)

Overview: Bitcoin dominance stands at 59.06%, and the Fear & Greed Index is neutral at 42 out of 100, indicating cautious investor sentiment. Competitors like Solana and Ethereum Layer 2 solutions are actively competing for DeFi market share. Meanwhile, Tezos’ price has dropped 29.33% over the past 90 days, underperforming the broader market’s 1.61% gain in the last 30 days.

What this means: Tezos needs stronger ecosystem performance to overcome its current underdog status. If the price falls below the 200-day exponential moving average (EMA) at $0.66, it could retest yearly lows near $0.43.

Conclusion

Tezos’ price outlook depends heavily on Etherlink’s ability to maintain DeFi growth and manage staking outflows after the upgrade. Institutional adoption of real-world assets, like uranium tokenization, offers a promising growth story. However, broader market challenges and competition remain risks.

Watchlist: Will Etherlink’s TVL stay above $80 million through the fourth quarter of 2025?

What are people saying about XTZ?

Tezos is experiencing a mix of excitement and caution. Here’s the latest:

1. Meme-driven price jumps – Traders are celebrating a 42% increase and sharing “Jeff Tezos” memes.
2. Growing DeFi interest on Etherlink – A partnership with Midas brought in $11 million in total value locked (TVL), showing growing institutional involvement.
3. Positive technical signals – Some traders point to moving average crossovers and a breakout from a 7-month downtrend.
4. Bearish concerns – Analysts warn about overbought conditions and a downward price channel.

In-Depth Look

1. @BRONDOR: “Altseason is printing” 🚀 bullish

“Tezos (XTZ) jumped 42% in 24 hours and 76% in 2.5 days. If it holds $1.10, it could reach $1.40.”
– BRONDOR (14K followers · 82K impressions · 2025-07-20 09:34 UTC)
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What this means: This is a positive sign for Tezos as many retail traders are jumping into fast-growing altcoins, driven by excitement around alternative cryptocurrencies.

2. @MidasDeFi: Institutional DeFi adoption grows on Tezos 📈 bullish

“Tokenized yield products on Etherlink Layer 2 have attracted $11 million in TVL, marking a significant development for Tezos.”
– Anonymous analyst (12K followers · 45K impressions · 2025-07-20 03:07 UTC)
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What this means: This is good news for Tezos because the growing use of Etherlink’s Layer 2 solutions shows real-world applications like tokenized assets and arbitrage strategies gaining traction.

3. @TA_Pro: “EMAs align for first time since Feb” 📊 mixed

“The Relative Strength Index (RSI) is at 77, indicating overbought conditions, but Fibonacci price targets around $1.04 seem achievable if Bitcoin’s dominance decreases.”
– Technical analyst (8.2K followers · 31K impressions · 2025-07-19 23:31 UTC)
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What this means: This is cautiously optimistic — strong momentum exists, but the high RSI suggests the price might pause or pull back between $0.93 and $1.04 before moving higher.

4. @VictorOlanrewaju: Descending channel risks $0.50 🚨 bearish

“Tezos is stuck below the 0.382 Fibonacci level at $0.75. Sellers are in control, with the Chaikin Money Flow (CMF) at -0.13.”
– Victor Olanrewaju (CCN analyst · 16K impressions · 2025-10-16 14:37 UTC)
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What this means: This is a warning sign for Tezos as money is flowing out and the price keeps making lower highs, indicating weakening buying interest.

Conclusion

The outlook for Tezos (XTZ) is mixed. On one hand, Etherlink’s DeFi growth and July’s price breakout are encouraging. Midas’ TVL increase from $45 million to $70 million by October adds to the optimism. On the other hand, the descending price channel and negative CMF readings suggest the market may be tiring. Keep an eye on Etherlink’s TVL—if it surpasses $100 million, it could spark renewed buying interest. Conversely, if Tezos falls below $0.55 support, it might trigger panic selling.

What is the latest news about XTZ?

Tezos is showing strong growth in its ecosystem but faces some technical challenges that could impact its price. Here’s the latest:

1. DeFi Growth & Partnerships (Oct 22, 2025) – Total Value Locked (TVL) jumps 22.5% quarter-over-quarter as Etherlink teams up with Google Cloud.
2. Real-Time Network Tracking (Oct 16, 2025) – Chainspect launches dashboards to monitor Tezos’ scalability and decentralization around the clock.
3. Bearish Price Signals (Oct 16, 2025) – Technical patterns suggest a possible price drop of $0.50 amid capital outflows.

In-Depth Look

1. DeFi Growth & Partnerships (October 22, 2025)

Summary:
Tezos’ Layer 2 solution, Etherlink, saw its Total Value Locked (TVL) increase to $70.14 million. This growth is supported by partnerships like the Tezos Foundation working with the Museum of the Moving Image and Etherlink developers joining Google Cloud’s $200,000 Web3 Startup Program. On-chain transactions rose to over 20.5 million, a 22.5% increase from the previous quarter. Popular DeFi projects such as Curve and Superlend are gaining more users on Tezos.

What this means:
This is a positive sign for Tezos (XTZ). Big-name partnerships and growing DeFi activity suggest more developers and institutions are interested in the platform. However, the price of XTZ remains volatile around $0.60 and needs steady growth to break through resistance at $0.70. (CoinJournal)

2. Real-Time Network Tracking (October 16, 2025)

Summary:
Tezos teamed up with Chainspect to provide real-time dashboards that track key network metrics like scalability, decentralization, and developer activity. These include validator participation rates, transaction speeds, and Layer 2 adoption levels. The goal is to offer more transparency, especially for institutional validators.

What this means:
This development is neutral for XTZ’s price. While better transparency can attract long-term investors, the real impact depends on whether these insights lead to meaningful network improvements. Also, with a circulating supply of 1.06 billion XTZ, significant price moves are less likely in the short term. (Tezos)

3. Bearish Price Signals (October 16, 2025)

Summary:
Technically, XTZ is trading within a descending channel, facing resistance at $0.62 and support at $0.55. Indicators like the Chaikin Money Flow (-0.13) and Relative Strength Index (RSI) at 40 show ongoing selling pressure. Analysts warn that if the price falls below $0.55, it could drop further toward $0.43.

What this means:
Short-term outlook is bearish. Weak buying interest and lower highs suggest traders are cautious. To reverse this trend, XTZ would need to climb back above $0.73, but current market sentiment favors a cautious approach. (CCN)

Conclusion

Tezos is experiencing a mix of strong ecosystem growth and challenging technical signals. While DeFi expansion and infrastructure upgrades point to long-term promise, the price remains under pressure from broader market factors and weak momentum. The question remains: will Etherlink’s partnerships help XTZ break out, or will technical trends keep it in a downtrend?

What is expected in the development of XTZ?

Tezos is making steady progress with these key updates:

1. Tezlink Integration (Q4 2025) – This will connect Tezos Layer 1 (L1) with Etherlink Layer 2 (L2) for smoother interaction.
2. Liquid Staking Expansion (Ongoing) – More users can stake Tezos (XTZ) and use stXTZ in Etherlink’s decentralized finance (DeFi) apps.
3. Governance Upgrades (2025–2026) – Voting rules will become more flexible, and new features will help protect the network and encourage activity.

Deep Dive

1. Tezlink Integration (Q4 2025)

What is it?
Tezlink, announced at TezDev 2025, allows developers to build apps on Tezos’ main blockchain (L1) using familiar programming languages like Michelson and SmartPy. At the same time, these apps can use Etherlink’s Layer 2 network, which is compatible with Ethereum’s technology and offers faster, cheaper transactions.

Why it matters:
This makes it easier for Ethereum developers to work with Tezos and helps different blockchains work together better. It’s a positive step for Tezos (XTZ) because it could attract more users and projects. However, if Etherlink’s DeFi ecosystem doesn’t grow as expected, adoption might slow down (Tezos).

2. Liquid Staking Expansion (Ongoing)

What is it?
stXTZ is a token that represents staked Tezos (XTZ) but can be used in DeFi apps on Etherlink. Launched in August 2025, it lets users earn rewards by staking their XTZ while still having the flexibility to trade or use stXTZ in other financial activities. The Youves DAO manages how staking rewards are shared, and there are plans to add more trading pairs, like stablecoins.

Why it matters:
This improves how efficiently people can use their Tezos holdings, which is good for the network. But if not enough people stake, it could reduce the value of staked tokens. So far, the total value locked (TVL) in Etherlink’s DeFi has grown to $70 million, showing early interest (Cryptopotato).

3. Governance Upgrades (2025–2026)

What is it?
Tezos is updating its voting system to adjust the number of votes needed based on past participation, making governance more flexible. Future plans might include rewards for users who provide liquidity on decentralized exchanges (DEXs), with small XTZ emissions as incentives.

Why it matters:
If more people vote, these changes will help the network evolve smoothly. But if liquidity mining rewards are too high, it could lead to inflation that might hurt XTZ’s price (Tezos Agora Forum).

Conclusion

Tezos is focusing on making its network more connected (Tezlink), increasing DeFi activity (stXTZ), and improving governance to build a stronger ecosystem. These updates could attract more developers and investors, but success depends on managing inflation and keeping Etherlink’s growth steady.

What’s next? Keep an eye out for upgrades aimed at reducing miner extractable value (MEV) and integrating real-world assets (RWA), like tokenizing uranium.

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What updates are there in the XTZ code base?

Tezos is making steady progress in improving scalability and security through important software updates.

1. Ebisu Kernel Support (October 15, 2025) – Boosts Layer 2 performance for better compatibility with Ethereum-based applications.
2. Seoul Protocol Upgrade (September 19, 2025) – Adds advanced security features and makes the network much more efficient.
3. Rio Protocol Activation (May 1, 2025) – Speeds up staking and improves rewards on Layer 2.

Deep Dive

1. Ebisu Kernel Support (October 15, 2025)

What happened: This update was activated through Tezos’ on-chain governance system. It improves how Tezos handles Ethereum Virtual Machine (EVM) operations on its Layer 2 network, called Etherlink. This means Ethereum-based decentralized apps (dApps) can run faster and more smoothly on Tezos.

Why it matters: By reducing delays and increasing transaction speed, Tezos becomes a stronger alternative to Ethereum. Developers can more easily move their apps to Tezos while still using familiar Ethereum tools. (Source)

2. Seoul Protocol Upgrade (September 19, 2025)

What happened: This upgrade introduced multisignature wallets that meet institutional security standards. It also made network validation 63 times more efficient by using a technology called BLS signature aggregation. This drastically cuts down the data validators need to process daily, lowering hardware demands.

Additionally, a new feature allows users to unstake their tokens with just one click, after a 4-day security waiting period.

Why it matters: While this may not immediately affect Tezos’ price, it sets the stage for more institutional investors to join. The network becomes more secure and easier to maintain, which is important for long-term growth. (Source)

3. Rio Protocol Activation (May 1, 2025)

What happened: This update shortened staking cycles from 4 days to just 1 day, making it quicker for users to earn rewards and access their funds. It also encourages participation in the Data Availability Layer (DAL), which helps scale Layer 2 solutions.

The protocol added stricter penalties for inactive validators to keep the network reliable and adjusted rewards to favor those supporting DAL operations.

Why it matters: Faster staking cycles improve liquidity for token holders, and the focus on DAL helps Tezos handle more transactions on Layer 2, supporting future growth. (Source)

Conclusion

Tezos’ recent updates focus on making the network faster (Ebisu), more secure and efficient for institutions (Seoul), and easier to use for everyday holders (Rio). As Layer 2 adoption grows through Etherlink, Tezos faces the challenge of balancing decentralization with the benefits of Ethereum compatibility. This ongoing evolution highlights Tezos’ commitment to building a flexible, self-updating blockchain infrastructure.