Tezos Price Analysis: XTZ/USD may get a trigger for growth as Tezos Foundation seeks to settle lawsuits

• Tezos Foundation announced the decision to settle all pending lawsuits.
• XTP/USD short-term recovery is capped by SMA200 1-hour.

Tezos (XTZ), now the 10th largest digital asset with the current market value of $1 billion, has lost over 8% in the recent 24 hours to trade at $1.5064 at the time of writing. Tezos is moving in sync with other coins out of top-20 with no clear fundamental reasons behind XTZ sell-off apart from global anti-risk sentiments.

Tezos Foundation dealing with lawsuits

Tezos Foundation announced recently that it had initiated a procedure of settlement of the existing lawsuits. The company denied any wrongdoing but chose to settle all pending in California state and federal courts. 

The Tezos Foundation chose to settle all claims because the Tezos Foundation believes it is in the best interest of the Tezos project and community as a whole. The Foundation continues to believe the lawsuits were meritless and continues to deny any wrongdoing. However, lawsuits are expensive and time-consuming, and it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts.

The settlement needs to be approved by the court. The positive decision may create a strong upside momentum for XTZ

The team conducted one of the most successful ICOs in 2018, however, it was accused of selling illegal and unregistered securities. At that time, Tezos insisted that it was not a security offering as tokens were given as a gift to people who made donations.

XTZ/USD: Technical picture

XTZ/USD bottomed at $1.4460 during early Asian hours and managed to regain ground above $1.500. However, the upside momentum was effectively capped by SMA200 1-hour at $1.5270. A sustainable move above this area will open up the way to $1.6000. This psychological level is reinforced by SMA50 1-hour. Moreover, it served as a lower boundary of the previous consolidation channel. $1.6000 is followed by SMA100 1-hour at $1.6400.

On the downside, a sustainable move below the intraday low of $1.4460, will increase the downside pressure and push the price towards a critical $1.4000 and $1.3200. This area may slow down the decline; however, once it is broken, psychological $1.200 may be retested.

XTZ/USD 1-hour chart