Tezos [XTZ] has seen significant growth in recent days following an announcement from the staking platform Everstake about supporting this token.
As a result, on November 24, while other altcoins seemed to be struggling, XTZ increased by 24%.
Will the price of the cryptocurrency XTZ decrease?
After a notable price surge, this altcoin has reached a level that it previously experienced selling pressure and price decline.
However, the current sentiment has changed as the overall market remains optimistic, with the blockchain receiving support from Everstake and increasing participation from traders and investors.
At the time of the press report, XTZ was trading at nearly $1.37 after the price dropped 4.5% in the past 24 hours. During the same period, its trading volume surged by 31%, indicating higher participation from traders and investors.
According to our technical analysis, XTZ is at a strong resistance level of $1.50 and appears to be struggling.
In the recent price surge, the altcoin broke through three resistance levels. Each time a resistance level was broken, the price consolidated before breaking out again.
Source: TradingView
Initially, when the XTZ price surge began, it faced a resistance level of $0.75. Before breaking this level, the price consolidated for four days. When reaching the next resistance level of $0.90, it consolidated for two days.
The last time the price touched the resistance level of $1.13, the price stabilized for nearly five days.
Currently, with the price reaching $1.50, today marks the first day at this level with expectations of some price corrections before a major price surge occurs.
Based on historical price momentum, if this altcoin breaks through the resistance level and closes the day above $1.50, it is very likely to surge 40%, reaching $2.10 in the coming days.
However, this speculation may take time to materialize as the Relative Strength Index (RSI) of XTZ is at 74.5 at the time of the press report, indicating that this asset is in overbought territory.
This RSI value indicates the possibility of a price correction or decline in the coming days.
On-chain metrics indicate a price decline
On-chain metrics also indicate bearish prospects for the asset. According to on-chain analytics company Coinglass, the net flow of XTZ on exchanges has remained positive since November 22.
Source: Coinglass
This indicates that whales and investors are continuously transferring their tokens from wallets to exchanges, signaling potential selling pressure and reinforcing bearish prospects.
Meanwhile, the Open Interest (OI) of XTZ has remained unchanged in the past 24 hours, indicating that traders may be hesitant to open new positions or are waiting for the price to trigger their stop-loss orders.
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