Tezos saw its price increase 0.53% over the past 24 hours to $0.6956 at the time of writing. The cryptocurrency currently has a market capitalization of $661.34 million and saw $12.34 million in trading volume over the last day.

In this in-depth analysis, we’ll look at the key metrics for Tezos over various timeframes to better understand the price action and uncover any valuable insights for traders.

Over the past hour, XTZ has fallen slightly by 0.05%. This indicates some short-term selling pressure, likely from traders taking quick profits from the past day's move upwards. However, the decline has been minimal so far, showing buyers are still eager to pick up XTZ on any dips.

Zooming out to the past 7 days paints a different picture, with XTZ down a significant 7.05% during this period. This suggests there was likely a climactic selloff earlier in the week that has yet to be completely absorbed by buyers. The price is still forming a potential bottoming pattern though, so a bullish reversal could emerge if support continues holding.

Looking at the monthly timeframe reveals the extent of the selloff XTZ has experienced recently. The cryptocurrency has cratered 18.08% over the past month as part of a broader risk-off move in digital assets. However, with prices reaching oversold conditions, there is potential for a trend change if key support around $0.65 holds.

Finally, taking a long-term view shows XTZ remains deeply entrenched in a bear market. It has plunged 48.45% over the past 6 months as part of a brutal cryptocurrency bear market. However, these extreme selloffs often set the stage for powerful countertrend rallies once a bottom is eventually formed.

Where Could Tezos Price Go Next?

When considering potential price targets for the next move in XTZ, traders will be closely watching a few key levels. To the upside, initial resistance is expected around $0.73, the August highs. A break above this level would open up a retest of the critical $0.80 area which marks the 50-day moving average as well as the 0.618 Fibonacci retracement of the recent slide.

If bulls can propel XTZ back above $0.80, that would indicate a new uptrend is likely underway. In which case, further overhead targets would come into play around $0.90 which marks the 200-day moving average. Beyond that, the 0.786 Fib level at $1.05 would be the next threshold for bulls to aim for.

On the downside, support is first found around $0.65 which is a key historical price floor. If this level fails to hold, selling momentum would likely accelerate with the next support zone coming into play around $0.55 - $0.50. This area lines up with the 2022 lows and 0.786 Fib level, making it critically important to hold. A break below here would open the door to a decline back towards $0.40.

Is Now a Good Time to Buy Tezos?

Given the severely oversold conditions and deeply negative sentiment towards cryptocurrencies currently, a contrarian opportunity could be setting up for long-term investors willing to go against the herd. However, in the short-term, risks remain elevated until a definitive bottom is formed.

One prudent strategy could be to scale into a long-term position, buying in small increments on any dips to cost average a holding. Stops would need to be used to contain losses in case the floor falls out from under the market. But for investors with a time horizon of 6 months to a year, buying XTZ around current levels could result in strong returns if/when the next bull market emerges.

As always, position size should be carefully managed based on individual risk tolerance. But for speculators willing to embrace the volatility, Tezos offers an intriguing token to trade given the extreme price swings it has exhibited at major highs and lows over the past year. Using options strategies to define risk can help capitalize on these big moves.

Overall, while risks are clearly still tilted to the downside, pockets of value are beginning to emerge in high-quality altcoins like XTZ at current prices. For nimble traders able to adopt a contrarian mindset, sizable upside could materialize in Tezos if key support continues holding over the weeks ahead.

Should You Buy Tezos Now or Wait for Lower Prices?

With Tezos price down 48% in the past 6 months, many investors are wondering if now is the time to buy the dip or if lower prices could still be ahead. Given the brutal selloff across the cryptocurrency complex, arguments can be made for both sides.

On the bullish side, the extreme pessimism in the market indicates much of the selling frenzy may have already run its course. Tezos now trades at a fraction of its all-time high, reaching levels not seen since the COVID-19 crash in March 2020. This suggests a washout is nearing completion. Additionally, on-chain data shows long-term holders are still accumulating, indicative of strong faith in the project's long-term viability.

However, considering the macroeconomic headwinds still swirling, more pain could be on the way. Surging inflation and rising interest rates have cratered risky assets across the board in 2022. Cryptocurrencies have been hit especially hard. With the Fed intent on crushing runaway inflation, further rate hikes are likely still coming, which could spark another wave of deleveraging. Also, XTZ has yet to retest its COVID-19 crash low around $0.80. New lows tend to act as a magnet during bear markets.

Given these conflicting signals, a prudent approach may be to average into a long-term position rather than go all-in at once. By steadily accumulating on any dips, investors can build exposure at a reasonable cost basis while minimizing downside risk. Although lower prices are possible, Tezos is unlikely to stay this undervalued forever. Once the macro backdrop stabilizes and buyers re-emerge, substantial upside potential exists from current levels.

How Low Can Tezos Go If the Bear Market Continues?

With Tezos still firmly in the grip of the 2022 cryptocurrency bear market, traders are wondering how much further prices could fall if the selling pressure persists. Let's analyze key support levels on the chart to assess where XTZ may find buyers if the declines continue.

The first critical support zone lies between $0.50 - $0.55, an area that lines up with the 2022 lows and the 0.786 Fibonacci retracement level. This area represents the last major line of defense before a retest of the COVID-19 crash bottom around $0.40. The XTZ price plunged to $0.38 in March 2020 amidst a severe liquidity crisis, so this level marks the ultimate downside target if panic reaches extreme levels once again.

Not only is the $0.40 zone a psychologically significant big round number, but it also corresponds to the top of the giant trading range that encompassed price action from 2018 to 2020. This range high served as strong resistance multiple times over those 2 years, so it's very likely to act as solid support on the way back down.

However, getting to such extreme lows would likely require another massive deleveraging event on par with March 2020's capitulation. With central banks now well aware of cryptocurrencies and their integration within the global financial system, regulators may be more proactive about instilling confidence if markets start spiraling out of control again.

But considering just how overheated the digital asset space became on the way up, a retest of the COVID-19 bottom can't be definitively ruled out. The good news is Tezos remains one of the highest-quality blockchain networks from a technology perspective. This lends confidence that once the dust settles, bulls will re-emerge and bid prices back up aggressively. But in the short-term, risk management remains critical as downside risks remain tilted to the downside.