Tezos Reaches ‘Mumbai Upgrade’, Next for Price?

The Tezos (XTZ) network is preparing itself for its latest upgrade, called ‘Mumbai Upgrade.’ On January 17, Nomadic Labs, a blockchain developer within the Tezos community, mentioned the Tezos Protocol Proposal, Mumbai, which is moving towards implementation.

This will be the 13th upgrade to the Tezos network. This upgrade will implement various new features. Key features include ticket transfer between accounts and a very short block time of 15 seconds.

Further, this upgrade will add Epoxy, a new technology on Mainnet, which is a perfect roll-up that can also be called a new Layer 2 scaling solution.

Epoxy will further strengthen the Mainnet, introducing proof-of-concept SNARKs, which will lead to faster transactions.

This 13th upgrade, called the ‘Mumbai Upgrade’, will be implemented after several tests. However, once implemented, the system will approach Tezos’ goal of one million transactions per second, Nomadic Lab reports.

The implementation of the upgrade will, as a result, increase the value of Tezos’ native token XTZ. The price of the altcoin, XTZ, has reacted positively to this development. XTZ experienced price volatility, but the altcoin has since resumed its bullish momentum.

Tezos Price Analysis: One Day Chart

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Tezos was priced at $0.99 on the one-day chart. Source: XTZUSD on TradingView

XTZ was trading at $0.99 at the time of writing. Although the coin started to pull back during the 48 hours, it has regained bullish momentum on the chart. The altcoin has formed a prominent cup and handle trading pattern, which is an extension of bullish momentum.

This change in price momentum can be attributed to the announcement of ‘Mumbai Upgrade’. XTZ’s immediate resistance is at $1.02, but the coin is expected to bounce back to $0.97.

Once it reaches the $0.97 mark, Tezos can target $1.19, which means an appreciation of 18%. Over the past week, the coin managed to gain more than 8 percent. The volume of XTZ traded increased in the last session, indicating increased buying volume.

Technical analysis

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Tezos noted an increase in buying power on the one-day chart Source: XTZUSD on TradingView

XTZ hit a multi-month high on buying pressure. The Relative Strength Index (RSI) touched the 80 mark a few trading sessions ago, indicating an overvalued trend.

Often, a coin that is overbought experiences a price correction and a drop in demand. Tezos showed the same, but at press time, the RSI again noted a rise.

This increase could mean that the altcoin could move back closer to the 80 mark. This phenomenal increase may be due to the latest development.

On the same note, XTZ rose above the 20-Simple Moving Average (SMA), which indicated that buyers are increasing price momentum.

The coin was also above the 50-SMA (yellow) line. Hence with higher accumulation, XTZ may soon breach the 200-SMA (green) line.

Overall, Tezos is quite bullish on the chart. However, the coin needs to stay above its local support line of $0.97 to continue the uptrend.

Featured image from UnSplash, charts from TradingView.com

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