Why did the price of XTZ fall?

Tezos (XTZ) dropped 2.03% in the last 24 hours, underperforming the overall crypto market, which fell 3.92%. This continues a 7-day decline of 1.97%, although Tezos is still up 32.29% over the past 30 days. Here’s why:

1. Profit-taking after TenX announcement – Traders sold some XTZ after TenX bought $3.25 million worth of tokens.
2. Weakness across the crypto market – A general pullback hit altcoins like Tezos harder.
3. Technical resistance levels – Price hit key moving averages and then dropped, triggering more selling.

1. Profit-Taking After TenX Purchase (Negative Impact)

What happened: On January 20, blockchain company TenX Protocols announced a partnership with the Tezos Foundation and bought 5.54 million XTZ tokens for about $3.25 million, paying $0.5868 per token. While this is a positive sign for Tezos in the long run, many traders took profits right after the news.
Why it matters: Short-term traders saw this as a chance to sell and lock in gains. Since the purchase price was close to Tezos’ 7-day average price ($0.59), it made sense for traders to exit around that level. This kind of “sell-the-news” reaction is common when news doesn’t immediately change how the technology works.
What to watch: Whether TenX’s plans to stake these tokens for 8–10% returns will attract more institutional buyers.

2. Market-Wide Risk-Off Sentiment (Negative Impact)

What happened: The crypto market dropped 3.92% in 24 hours, with Bitcoin gaining dominance at 59.15% as investors moved to safer assets. Altcoins like Tezos suffered more, with altcoin season indicators hitting a 3-month low.
Why it matters: Tezos tends to be more volatile than Bitcoin, so it felt the impact of the market sell-off more strongly. The Fear & Greed Index, which measures market sentiment, was at 32, showing cautious or fearful investors. Mid-sized coins like Tezos often lose value faster during these times because they don’t have as much liquidity as Bitcoin.
What to watch: Changes in the Fear & Greed Index and Bitcoin’s market share for signs that altcoins might recover.

3. Technical Resistance Levels (Negative Impact)

What happened: Tezos hit resistance at its 7-day simple moving average ($0.59) and 30-day exponential moving average ($0.55). Technical indicators like the MACD showed downward momentum, confirming selling pressure.
Why it matters: Not holding above $0.59 suggested weak buying interest, leading to more selling from both algorithms and retail traders. Trading volume increased during the drop, indicating stop-loss orders were triggered.
What to watch: The $0.555 support level is critical. If Tezos falls below this, it could drop further toward $0.52.

Conclusion

Tezos’ recent price drop is mainly due to traders taking profits after the TenX purchase announcement, combined with a broader market pullback and technical selling pressure. While the potential for staking yields of 8–10% offers a positive outlook, short-term market sentiment is currently more influential.
Key point to watch: Can Tezos hold the $0.555 support level ahead of the January 24 Tallinn protocol upgrade?

What could affect the price of XTZ?

Tezos is showing mixed signals right now, with strong support from institutions but also some caution across the broader market.

1. Institutional Staking Growth – TenX’s recent $3.25 million purchase of XTZ and their staking partnership could reduce the available supply and strengthen the network.
2. Tallinn Upgrade Coming – The protocol upgrade scheduled for January 24 may improve Tezos’ technology, but smooth execution is crucial to avoid a drop in price after the news.
3. Real-World Assets & Art Use Cases – Projects like uranium tokenization and growing art-related activity offer new uses for Tezos, though success depends on gaining traction in these specialized areas amid general crypto uncertainty.

In-Depth Look

1. Institutional Staking & Partnership (Positive Outlook)

What’s happening: Between January 2 and 19, 2026, TenX Protocols bought 5.5 million XTZ tokens (worth $3.25 million) to stake through their validators, aiming for an 8-10% annual return. The Tezos Foundation might also delegate more tokens to support decentralization. TenX focuses on earning revenue by validating transactions on high-performance blockchains. TenX Announcement
Why it matters: Staking locks up tokens, reducing the number available to sell, which can ease downward price pressure. Institutional involvement like this signals confidence in Tezos, possibly encouraging others to follow suit. Plus, staking rewards offer an incentive to hold XTZ long-term, helping stabilize the price.

2. Tallinn Protocol Upgrade (Mixed Outlook)

What’s happening: The Tallinn upgrade will go live on January 24, requiring Tezos bakers (validators) to update their software to Octez v24. This upgrade aims to improve scalability and efficiency as part of Tezos’ ongoing self-updating governance process. Such upgrades often increase trading activity and attention around the activation date. TradingView News
Why it matters: If the upgrade runs smoothly, it could boost developer confidence and user activity, supporting the price. However, there’s a risk of a “sell-the-news” reaction—where traders sell after the upgrade—especially if the update doesn’t bring immediate, noticeable improvements or if technical issues arise.

3. Real-World Assets & Niche Adoption (Positive Outlook)

What’s happening: Tezos co-founder Arthur Breitman is leading a project to tokenize uranium (uranium.io), aiming to make investing in this commodity more accessible. Meanwhile, the Tezos art ecosystem saw over 500,000 NFT sales in 2025, with growing partnerships with museums. Uranium Bet | Art Growth
Why it matters: These niche uses could set Tezos apart by creating real-world demand for XTZ. Uranium tokenization might attract institutional investors, but regulatory clarity will be important. Success in these areas could increase XTZ’s value as a unique asset, though progress should be watched closely.

Conclusion

Tezos is navigating short-term risks from its upcoming upgrade while benefiting from strong institutional support and emerging niche applications. Keep an eye on how the Tallinn upgrade is received and how uranium tokenization develops to see if XTZ can break through resistance levels. The pace of uranium tokenization growth will depend heavily on evolving regulations.

What are people saying about XTZ?

Conversations around Tezos (XTZ) mix hopeful upgrade news with tough market realities. Here’s what’s trending right now:

1. Traders are sharing optimistic price predictions for 2026
2. A sharp reminder that XTZ has dropped 93% from its all-time high
3. Exchanges are pausing trading to support an upcoming network upgrade
4. The community remains confident that XTZ can bounce back

Deep Dive

1. @The_NewsCrypto: Positive 2026 Price Predictions

"Find out the predicted price target for $XTZ in 2026 according to our analysts"
– @The_NewsCrypto (29.7K followers · 2026-01-20 10:13 UTC)
View original post
What this means: This is a positive sign for XTZ. Growing analyst interest suggests that Tezos has potential, which could attract more investors and increase buying activity if these forecasts come true.

2. @lano1106: Reminder of XTZ’s Big Price Drop

"On October 4, 2021, $XTZ (@tezos) hit its all-time high at $9.12! Today it’s $0.57, a 93.7% drop since then."
– @lano1106 (7.6K followers · 2026-01-20 12:11 UTC)
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What this means: This is a warning sign for XTZ. The huge loss from its peak could discourage new investors and keep current holders cautious, contributing to negative market sentiment.

3. @bitFlyerUSA: Temporary Trading Pause for Upgrade

"An upgrade of Tezos (XTZ) is scheduled... deposits and withdrawals... temporarily suspended starting January 23"
– @bitFlyerUSA (5.4K followers · 2026-01-20 17:08 UTC)
View original post
What this means: This is neutral news. While the upgrade aims to improve the Tezos network, the temporary halt in trading might cause short-term inconvenience and reduce liquidity for traders.

4. @AvrgJoeCrypto: Community Sees Rebound Potential

"Tezos $XTZ still has a chance!"
– @AvrgJoeCrypto (966 followers · 2026-01-18 01:01 UTC)
View original post
What this means: This is encouraging for XTZ. It shows that many in the community still believe in a recovery, which can help keep holders committed during uncertain times.

Conclusion

The outlook for XTZ is mixed. On one hand, there are hopeful price predictions and strong community support. On the other, the sharp drop from past highs reminds investors of the challenges ahead. Keep an eye on the January 23 upgrade—it could be a key moment for improving the network’s stability and future prospects.

What is the latest news about XTZ?

Tezos is seeing increased activity thanks to new institutional staking deals and upcoming network upgrades. Here’s a quick look at the latest news:

1. TenX’s $3.25M XTZ Staking Deal (January 20, 2026) – Public company TenX Protocols teamed up with the Tezos Foundation to buy and stake 5.5 million XTZ tokens.
2. Tallinn Protocol Upgrade Launch (January 24, 2026) – Tezos is rolling out a network upgrade focused on improving efficiency, which requires node operators to update their software.
3. bitFlyer Pauses XTZ Transactions (January 20, 2026) – The exchange temporarily stopped deposits and withdrawals of XTZ to prepare for the network upgrade.

Deep Dive

1. TenX’s $3.25M XTZ Staking Deal (January 20, 2026)

What happened: TenX Protocols bought 5.5 million XTZ tokens, worth about $3.25 million, through market and private trades at an average price of $0.5868 per token. As part of this deal, the Tezos Foundation delegated some of its tokens to validators run by TenX. This helps make the network more decentralized. TenX plans to stake these tokens using its own setup, aiming for annual returns between 8% and 10%.
Why it matters: This shows growing confidence from institutional players in Tezos’ governance and staking model. Locking up tokens for staking can reduce the number of tokens available for trading, which may support the price. However, after the announcement, XTZ’s price stayed around $0.58, showing a cautious market response.
(TenX Protocols)

2. Tallinn Protocol Upgrade Launch (January 24, 2026)

What happened: The Tallinn upgrade goes live on January 24. Node operators and bakers (those who validate transactions on Tezos) need to update their software to Octez v24. This is a major update designed to make the network more efficient and secure. If operators don’t update, their nodes could lose consensus with the network.
Why it matters: This upgrade is generally positive for Tezos, showing the network’s ability to improve itself over time. However, there might be short-term disruptions on exchanges or in trading as the upgrade takes place. Traders will be watching closely to see how the network performs after the update.
(Nomadic Labs)

Conclusion

The combination of growing institutional staking and smooth network upgrades highlights Tezos’ progress as a mature blockchain platform. The upcoming Tallinn upgrade could also boost developer interest and activity once it’s implemented.

What is expected in the development of XTZ?

Tezos is moving forward with several important updates:

1. Protocol Upgrade (January 23, 2026) – The network will undergo an upgrade, requiring a temporary pause on XTZ transactions.
2. Tezos X Scalability Push (2026) – A plan to improve network speed and make it easier for developers to build on Tezos.
3. Institutional Staking Expansion (Q1 2026) – Partnership with TenX to increase validator operations and support network security.

In-Depth Look

1. Protocol Upgrade (January 23, 2026)

What’s Happening?
On January 23, 2026, Tezos will update its network software. During this time, exchanges like bitFlyer will temporarily stop XTZ deposits and withdrawals (bitFlyer). While the exact details haven’t been shared, previous upgrades have focused on making the network faster and compatible with Ethereum-based applications.

Why It Matters
This upgrade is a routine part of how Tezos improves itself. If everything goes smoothly, it will boost confidence in Tezos’ ability to manage changes effectively. However, any delays or technical problems could cause short-term price fluctuations.

2. Tezos X Scalability Push (2026)

What’s Happening?
Tezos X, introduced in 2024, aims to combine the main Tezos blockchain (Layer 1) with a secondary network called Etherlink (Layer 2) to create a more flexible system. The goals include faster transaction finality (under one second), support for popular programming languages like JavaScript and Python, and better interaction with other blockchains (TezDev 2025).

Why It Matters
This is a positive development for the long term. Making it easier and faster for developers to build on Tezos could attract more decentralized apps (dApps) and increase the amount of money flowing through the network. However, success depends on how widely Etherlink is adopted. There’s also competition from similar solutions on Ethereum, and the transition might take longer than expected.

3. Institutional Staking Expansion (Q1 2026)

What’s Happening?
TenX Protocols has bought 5.5 million XTZ tokens (worth about $3.25 million) to run validator nodes, with plans from the Tezos Foundation to delegate more tokens to them (TenX). This move supports growing interest from institutions looking to earn staking rewards, which target returns of 8-10%.

Why It Matters
This is good news for Tezos because more staking means fewer tokens available for trading, which can help support the price. It also strengthens the network’s security. However, there is a risk that if too much power is held by a few validators, it could reduce decentralization.

Conclusion

Tezos is balancing immediate technical updates with long-term growth plans. The January 23 upgrade is a routine but important step, while Tezos X and the partnership with TenX show a focus on expanding the ecosystem and increasing network security. The growth of Etherlink’s decentralized finance (DeFi) projects, like Oku’s integration with Uniswap v3, could further boost Tezos’ usefulness.

The key question for 2026: How will Tezos maintain decentralization while growing institutional validator participation?

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What updates are there in the XTZ code base?

Tezos (XTZ) is actively improving its technology with important upgrades and better developer tools.

1. Tallinn Protocol Activation (January 24, 2026) – Node operators must update their systems to keep the network running smoothly.
2. Tezt Testing Framework Upgrade (November 10, 2025) – Added tools to measure memory use and fixed issues to make testing more reliable.
3. Rio Protocol Upgrade (May 1, 2025) – Made staking more flexible and improved Layer 2 scalability for faster transactions.

Deep Dive

1. Tallinn Protocol Activation (January 24, 2026)

Overview:
This is Tezos’ 20th major upgrade, called Tallinn. It requires those running network nodes (called “bakers”) to update to a new software version, Octez v24, to keep the network working properly. The upgrade aims to make the network faster and easier for developers to use.

Tezos uses a special upgrade process that avoids splitting the blockchain into competing versions. However, if node operators don’t update, their nodes could fall behind and stop validating transactions.

What this means:
This is positive for XTZ because smooth upgrades show Tezos’ strong technical foundation. Better performance may attract more developers, but node operators need to update quickly to avoid problems. (Source)

2. Tezt Testing Framework Upgrade (November 10, 2025)

Overview:
Tezos improved its testing software, called Tezt, to version 4.3.0. This update fixed crashes and made sure the testing environment matches what developers use locally, reducing errors.

New tools were added to track memory usage, helping developers spot performance issues earlier. This leads to smoother updates and less time spent fixing bugs.

What this means:
This is neutral for XTZ since it mainly helps developers. While it could speed up future improvements, regular users won’t notice immediate changes. (Source)

3. Rio Protocol Upgrade (May 1, 2025)

Overview:
The Rio upgrade changed how staking works by shortening the cycle time to just one day. It also encouraged more participation in the Data Availability Layer (DAL), which supports faster Layer 2 solutions.

Inactive bakers now face stricter penalties, helping keep the network reliable. These changes support the growth of Etherlink, Tezos’ Ethereum-compatible Layer 2 rollup.

What this means:
This is positive for XTZ over the long term because faster transaction finality and scalable Layer 2 solutions improve the network’s usefulness. However, the price didn’t react strongly right after the upgrade. (Source)

Conclusion

Tezos is focused on quick upgrades and better tools for developers. The upcoming Tallinn activation highlights its smooth upgrade process. While these updates strengthen the network’s foundation, wider adoption and Etherlink’s success will be key to turning technical progress into real growth.

How will Tallinn’s performance improvements affect validator participation and XTZ staking?