XTZ, the native coin of the Tezos blockchain network, has emerged as the best-performing digital currency in the past 24 hours. Its value has surged 38%, reaching a seven-month high of 1.13 USD as of now.
However, the price surge has created significant selling pressure, indicating the likelihood of a correction ahead.
Tezos Traders Eagerly Seeking Profits
The price of XTZ has surged 38% in the past 24 hours and is currently leading the market in growth. This spike follows the announcement that the staking platform Everstake will support the cryptocurrency.
This recovery is also driven by a recent Q3 2024 report from the analytics platform Messari. The report highlights strong growth signals for Tezos, including increased trading volume, more decentralized applications, a rise in upgrade proposals, and a continuously growing number of active validators.
However, the recent price surge has prompted many XTZ holders to seek profit-taking, as evidenced by a spike in the amount of this coin flowing into exchanges. According to Coinglass, on Tuesday, the inflow of XTZ to exchanges reached 2.22 million USD, the highest level since the beginning of the year.
When the inflow of an asset spikes, a large amount of that asset is transferred to exchanges for sale from wallets or other platforms. This can put downward pressure on the price of XTZ, causing it to lose recent gains.
XTZ Net Flow. Source: Coinglass
Additionally, the RSI of this coin has reached an overbought level, confirming the potential for a price correction in the short term. At the time of release, the RSI of XTZ is 74.26.
The RSI measures the market conditions of overbought and oversold for an asset. This index fluctuates from 0 to 100, with values above 70 indicating that the asset has been overbought and needs to correct. Conversely, values below 30 suggest that the asset has been oversold and may see a recovery.
XTZ RSI. Source: TradingView
Thus, the RSI of XTZ at 74.26 indicates that it has experienced strong upward momentum and may need to correct or reverse. This suggests that the price of this coin has increased too quickly and may be at risk of a bullish reversal.
XTZ Price Prediction: The Coin Could Fall Below 1 USD
Currently, XTZ is trading at 1.13 USD, holding above the support level of 1.07 USD. If buying momentum weakens, the price could drop to this critical support level. If it cannot hold 1.07 USD, XTZ could fall below 1 USD, potentially dropping to 0.97 USD — a decrease of 14% from the current value.
XTZ Price Analysis. Source: TradingView
If the upward trend continues, XTZ could surpass the resistance level of 1.19 USD and move towards 1.40 USD, signaling a stronger bullish move.
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