- XTZ is listed on Coinbase Japan on the 6th of November.
- In contrast to the Coinbase effect, the price of XTZ failed to rise.
Ahead of the 12th network update, XTZ, the native currency that supports the Tezo ecosystem, received a listing from Coinbase Japan (a subsidiary of Coinbase operating in Japan) on November 6th.
In a press release, the open source blockchain said that the listing of XTZ on a leading exchange in Japan will increase Tezo’s presence in the Asian market.
Read Tezos [XTZ] Price forecast 2023-2024
Coinbase Japan’s listing of XTZ is significant because it came ahead of Tezo’s 12th network upgrade – the Lima upgrade.
According to Lima upgrade suggestions Published in October, the twelfth update will introduce a number of significant improvements to the Tezos network. These will include an optimistic kernel-based update set, consensus keys for the “bakers” on the network, and an improved ticketing system and pipelining, among others.
XTZ says no to the Coinbase effect
Data from cryptocurrency price tracking platform CoinMarketCap showed that before Coinbase Japan confirmed that it now supports XTZ trading, the alt price changed to $1.02.
And while its price started to drop before the announcement, as mentioned earlier, it fell even further after word got out. This was in contrast to the famous Coinbase effect, where many believed that listing a coin on Coinbase would cause the coin’s price to go up.
In the 2021 report titled “Analysis of the Crypto Exchange Pump Phenomenon,” Roberto Talamas of Messari analyzed the performance of some tokens during the first five days of listing on Coinbase. Talamas found that when tokens are listed on Coinbase, they experience an average price growth of 91% in the first five days of listing.
Coinbase’s impact may not be felt in the current market as the year has so far been plagued by a series of problems, from failed projects to a market downturn exacerbated by the sudden collapse of FTX.
XTZ on the daily chart
After the demise of FTX in early November, the price of XTZ fell by 27%. XTZ was trading at $0.993 at levels last seen in March 2020. To date, the price of XTZ is down 78%.
Since the collapse of FTX, the XTZ market has been controlled by sellers. The Directional Movement Index (DMI) showed their strength (red) rising above buyers (green) on November 8th, shortly after the FTX debacle began.
At the time of writing, the strength of the sellers at 23.43 is much higher than the buyers at 14.31.
Moreover, a major indicator such as the Relative Strength Index (RSI) indicated the intensity of XTZ selling that has occurred since the FTX crash. The relative strength index settled at 38.62.