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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 skyrocketed 38%, reaching a seven-month high of $1.13 year-to-date.
However, the price rally has created increased selling pressure, signaling a possible correction ahead.
Tezos Traders Aggressively Seek Profits
XTZ price has climbed 38% in the past 24 hours and is currently leading the market in terms of growth. This increase followed Notification that the Everstake staking platform will support cryptocurrencies.
This rally was also fueled by the report Q3 2024 recently from analytics platform Messari. The report highlights strong growth signals for Tezos, including rising transaction volumes, more decentralized applications, an increase in upgrade proposals, and the ever-increasing number of active validators .
However, the recent price surge has prompted many XTZ Holders to look to take profits, which is reflected in the sudden increase in the amount of this coin pouring into the exchange. According to Coinglass, on Tuesday, XTZ’s inflow reached $2.22 million, 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 other wallets or platforms. This could put downward pressure on XTZ’s price, causing it to lose its recent gains.
Additionally, the currency’s RSI has reached overbought levels, confirming the possibility of a short-term price correction. At the time of publication, XTZ’s RSI was 74.26.
The RSI evaluates the overbought and oversold market conditions of an asset. The index ranges from 0 to 100, with values ​​above 70 indicating the asset is overbought and needs a correction. Conversely, a value below 30 indicates that the asset is oversold and could see a recovery.
So, XTZ’s RSI at 74.26 suggests it has experienced strong upward momentum and may need a correction or turnaround. This indicates that the price of the coin has increased too quickly and there may be an increased risk of a reversal.
XTZ Price Prediction: Coin May Fall Below 1 USD
Currently, XTZ is trading at $1.13, holding firmly above the $1.07 support level. If buying momentum weakens, the price could drop to this critical support level. If it fails to hold $1.07, XTZ could fall below $1, possibly falling to $0.97 — a 14% drop from its current value.
If the bullish momentum continues, XTZ could break above the $1.19 resistance and move towards $1.40, signaling an even stronger upside move.
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