Short

Overvalued Tezos

Updated

How long will Tezos continue climbing up along the trend with the fact that it is already way overvalued?
the increasing stacked ratio would not support the price forever. Staking for nothing but staking itself will not lead to a happy ending...

Note

When we use a simple 90D MA NVT evaluation model to compare BTC, ETH, and XTZ, we will find that Tezos has a surprisingly higher NVT value:
BTC:76.9
ETH:68.1
XTZ:144.7

Note

In terms of the project progress, Tezos has been moving slowly comparing to its competitors. Actually, except for STO, most of the features announced have already been finished by its competitors. With the fact that Tezo is in Top 10 Market Cap and the initial money it has raised, its progress does not match it. Considering the previous impressive rising, the price itself and the trend is very strong. However, it is not difficult to find out that the original reason behind it is the combination of 1.staking reward offered by Coinbase 2. Launch on Bixxxce 3. Rumors of STO. Reason1 has also caused a great impact on the marketing and stake ratio, which also leads to a virtuous circle. All these are great but it also means the benefit has been realized in the form of the price rising. The staking can cause not only a virtuous circle but also a vicious circle. Traders should be alarmed once there is a downtrend signal.

Note

2020-04-20, Tezos used to outperform most coins while the whole market is tanking.
However, in the last 24 hours, Tezos only outperformed less than 1/3 coins in the top 50. Considering XTZ moves with BTC but not as strong as BTC, short XTZ in the XTZ/BTC might be a good choice.

ClydeZ

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