Tezos (XTZ) price has struggled to stay above the $3.00 mark after printing a 5-month high at $3.40.
Fundamental analysis: imToken announces support for Tezos
Ethereum and Bitcoin wallet imToken has announced support for Tezos. The announcement represents another contribution to the popular phenomenon that includes combining digital value storage in crypto-assets and transferring them via digital wallets.
Tezos is one of the PoS blockchains that introduced the next generation of financial networks and governance systems for all kinds of businesses. Under these new financial networks, users are able to receive rewards relative to the size of their contributions.
Tezos utilizes a consensus mechanism named Liquid Proof of Stake (LPoS) protocol to maintain security in its network in a greener and low-cost manner, compared to Bitcoin which requires high computational resources to secure the network.
“This integration with imToken not only continues the transformation of payment transactions but also allows the community to continue building on and advancing the Tezos protocol,” said David Shin, helm of TZ APAC.
The integration of Tezos will allow the users to help secure the network by assigning their tez to imToken and other validators available within the Tezos ecosystem. The validators are responsible for securing the network on behalf of wallet users.
“Ethereum has been our focus from the beginning, but with PoS chains emerging in popularity for their lower transaction costs and energy-efficient usage, our users are asking for more PoS chains to try and use,” said Ben He, CEO of imToken.
The introduction of Tezos will bring a self-amending governance mechanism that represents the latest technology, he added.
Technical analysis: Correction takes place
Tezos price has slipped about 20% since making a 5-month high near the $3.40 mark. The digital asset is trading about 8.5% lower this week while it is up nearly 40% since the beginning of this month.
XTZ/USD daily chart (TradingView)
The price action has struggled to stay above the $3.00 mark despite securing a daily close above this line. A pullback in Bitcoin facilitated a correction in altcoins as well with the near-term support located near $2.50, where 200-DMA sits. This is likely to be seen as an opportunity for XTZ investors to get on the long side of the market.
Chinese digital wallet imToken has announced the integration of public blockchain Tezos. In the meantime, XTZ has corrected about 20% from the recent multi-month highs. Going forward, it is likely to see the price action trading between $2.50 and $3.40.