Ubisoft builds NFTs on Tezos; XTZ responds with a 37% surge

Tezos, Ubisoft Quartz  NFT XTZ
image from XTZnews.com

Key Takeaways:

  • Ubisoft, a France-based video game company collaborated with cryptographic ledger Tezos to build in-game nonfungible token (NFT).
  • XTZ, Tezos’ native token, surged 37% on the day of the announcement, correcting 9% hours later.

YEREVAN (CoinChapter.com) – XTZ reversed its monthly losses on Tuesday in the wake of a significant partnership with Ubisoft on Dec 7. The gaming giant will build its Quartz NFT platform on the Tezos blockchain and produce in-game NFTs called “Digits,” with several other additional features.

An NFT expert with a vast following and Twitter handle, DCL Blogger, provided details on the partnership and how the NFTs can be useful within the Ghost Recon game. He asserted that the first batch is “claimable for free for ‘Tom Clancy’s Ghost Recon Breakpoint Ubisoft Connect PC players.”

The ‘digits’ could represent weapons, as well as gear, like “Wolf enhanced pants” or the “Wolf enhanced helmet.” Additionally, the NFTs will display a unique serial number and record the owner’s history within the game.

Also read: XTZ rallies 64% after American music star launches NFT collection backed by Tezos blockchain

The key partnership sent Tezos’ in-house token XTZ up 37% in 24 hours, amid the ubiquitous losses across the market.

XTZ daily chart

XTZ/USD exchange rate stood at $5.31 in the Wednesday session, after a 9% decline. Overall, the digital asset had a turbulent week, with a sharp 30% drop at the beginning of December, followed by the ‘Ubisoft surge’ and the subsequent 9% correction.

Furthermore, Tezos’ token formed a Descending Triangle on the daily charts. It features a descending resistance and horizontal support that prevented price action’s sharp moves. The Triangle’s support bar was instrumental since late August, while the resistance has capped XTZ’s bullish attempts since October.

Tezos (XTZ) daily chart, featuring a descending triangle. Source: XTZUSD on TradingView.com
Tezos (XTZ) daily chart, featuring a descending triangle. Source: XTZUSD on TradingView.com

The Descending Triangle is a bearish reversal formation. Thus, it could result in XTZ price declining in the upcoming sessions. However, there are several bullish factors at play for Tezos as well.

Also read: Tezos (XTZ) price doubled in a month on blockchain upgrade and institutional adoption FOMO

For example, the digital asset retested the Triangle’s resistance as support twice on Dec 8, which is a positive sign for Tezos bulls. The token could attempt a new leg up in the coming sessions. A bullish relative strength index (RSI; purple graph at the bottom) also looked reassuring.

In hindsight, the RSI is a momentum indicator, and it reflects the traders’ confidence level in an asset. Even though XTZ’s RSI gave a choppy performance in December, it rose back to 50, which could indicate rising return expectations from traders. Given the new partnership with Ubisoft, the bullish scenario seems possible.

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