Is Tezos [XTZ] crypto poised for a correction? Key data says…

The exchange net flow of XTZ crypto has remained consistently positive.
XTZ’s Relative Strength Index (RSI) was 74.5, indicating a potential price correction.

As a seasoned crypto investor with a decade of experience under my belt, I’ve seen more market fluctuations than I care to remember. The Tezos [XTZ] rally over the past few days has been quite impressive, and it’s hard not to get caught up in the excitement. However, I always try to approach these situations with a level head and a healthy dose of skepticism.

In recent times, Tezos (XTZ) has experienced significant growth due to a recent statement made by the staking platform Everstake endorsing the token.

As a result, on the 24th of November, while other altcoins seemed to be struggling, XTZ gained 24%.

Will the price of XTZ crypto fall?

After experiencing a significant surge in value, this cryptocurrency alternative has now reached a point in its history where it typically encounters increased selling and subsequent price drops.

Yet, there’s a change in mood as the broader market maintains an optimistic stance, with the blockchain receiving backing from Everstake and growing interest from both traders and investors.

Currently, XTZ is being exchanged around $1.37, following a 4.5% drop in price over the last day. Simultaneously, there was a 31% increase in trading volume, suggesting greater engagement from traders and investors.

Based on the technical assessment by AMBCrypto, Tezos (XTZ) seemed to encounter a significant hurdle around $1.50 and showed signs of difficulty advancing.

In its latest price rise, the cryptocurrency broke through three barriers that normally limit its growth. Every time it surpassed one of these barriers, there was a brief pause in the price movement before it continued to increase once more.

At first, as the XTZ surge started, it encountered opposition at the $0.75 mark. Prior to surpassing this point, the price stayed steady for a span of four days. Upon reaching the subsequent resistance at $0.90, it remained stable for two days.

The last time the price hit the resistance level of $1.13, it consolidated for nearly five days.

Today, we’ve hit a new milestone as the price has risen to $1.50 for the first time. Some analysts anticipate a minor adjustment or dip in prices before we witness a significant upward trend.

According to past price trends, if the altcoin manages to surpass its current resistance and end the day at over $1.50, it’s likely that we might see a significant increase of about 40%. This could potentially push the price up to around $2.10 in the near future.

Yet, it’s worth noting that given XTZ’s current Relative Strength Index (RSI), which stands at 74.5 as we speak, suggests the asset has moved into an overbought state. This might necessitate a period of time before any potential execution.

This RSI value suggested a potential price correction or decline in the coming days.

Bearish on-chain metrics

The data from on-chain analysis suggests that the asset’s future might lean towards a downward trend. As reported by the on-chain analytics company Coinglass, there has been a steady inflow of XTZ on exchanges since November 22nd.

Read Tezos’ [XTZ] Price Prediction 2024–2025

This implies that whales (large token holders) and investors are consistently moving their tokens from their wallets to exchanges, which could indicate increased selling pressure and support the notion that the market may trend downward.

Over the last day, it appears that traders have been holding back from opening new positions with XTZ, as the Open Interest has remained constant. This could indicate that they’re either cautious about entering new trades or waiting for the price to move in a way that sets off their stop-loss orders.

2024-11-26 05:11

Will the price of XTZ crypto fall?

Bearish on-chain metrics

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