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XTZ, the native coin of blockchain network Tezos, has emerged as the top-performing cryptocurrency over the past 24 hours. Its value has surged by 38% to trade at a seven-month high of $1.13 as of this writing.
However, the price increase has triggered growing selling pressure, indicating a potential pullback ahead.
Tezos’ Traders Scamper for Gains
XTZ’s price has climbed by 38% over the past 24 hours and currently ranks as the market’s top gainer. This surge follows the announcement that the staking platform Everstake will support cryptocurrency.
The rally is further fueled by a recent Q3 2024 report from analytics platform Messari. The report highlights strong growth signals for Tezos, including increased transaction volume, more decentralized applications, a rise in upgrade proposals, and a growing active validator count.
However, the recent price jump has prompted many XTZ holders to seek profit, as evidenced by the spike in the coin’s exchange inflow. Per Coinglass, as of Tuesday, XTZ’s exchange inflow is $2.22 million, its highest since the beginning of the year.
When an asset’s exchange inflow spikes, a significant amount of that asset is transferred onto exchanges for sale from wallets or other platforms. This can put downward pressure on XTZ’s price, causing it to shed its recent gains.
Additionally, the overbought readings from the coin’s Relative Strength Index (RSI) confirm the likelihood of a price correction in the short term. At press time, XTZ’s RSI is 74.26.
The RSI indicator measures an asset’s oversold and overbought market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for correction. On the other hand, values below 30 indicate that the asset is oversold and may witness a rebound.
Therefore, XTZ’s RSI of 74.26 suggests it has experienced strong upward momentum and may be due for a correction or pullback. It indicates that the coin’s price has risen too quickly, and there might be an increased risk of a price reversal.
XTZ Price Prediction: Coin May Drop Below $1
XTZ is currently trading at $1.13, holding above the $1.07 support level. If buying momentum weakens, the price may drop to this key support. A failure to maintain $1.07 could push XTZ below $1, potentially falling to $0.97 — a 14% decline from its current value.
If the uptrend continues, XTZ could break past the $1.19 resistance and advance toward $1.40, signaling further bullish momentum.