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

2min Read

Tezos could soar by 40% to reach the $2.10 level if it closes a daily candle above $1.50.

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

Tezos [XTZ] has gained immense gain over the past few days following an announcement by the staking platform Everstake supporting 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?

Following a notable upside rally, the altcoin has reached a level where it has historically experienced selling pressure and price declines.

However, the current sentiment has shifted as the overall market remains bullish, with the blockchain gaining support from Everstake and increased participation from traders and investors.

At press time, XTZ was trading near $1.37 after a price decline of 4.5% in the past 24 hours. During the same period, its trading volume jumped by 31%, indicating higher participation from traders and investors.

According to AMBCrypto’s technical analysis, XTZ was at a strong resistance level of $1.50 and appeared to be struggling.

During its recent price surge, the altcoin breached three resistance levels. Each time it breached a resistance level, there was some price consolidation before breaking out again.

Tezos (XTZ) technical analysis

Source: TradingView

Initially, when the XTZ rally began, it faced resistance at $0.75. Before breaching this level, the price consolidated for four days. When it reached the next resistance at $0.90, it consolidated for two days.

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

Now, with the price reaching $1.50, today marks the first day at this level, and there is an expectation of some price correction before a major rally occurs.

Based on historical price momentum, if the altcoin breaks out above the resistance level and closes a daily candle above $1.50, there is a strong possibility it could soar by 40%, reaching the $2.10 level in the coming days.

However, this speculation might take time to execute, as XTZ’s Relative Strength Index (RSI) was 74.5 at press time, indicating that the asset is in an overbought zone.

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

Bearish on-chain metrics 

On-chain metrics also point to a bearish outlook for the asset. According to the on-chain analytics firm Coinglass, XTZ’s exchange net flow has remained consistently positive since the 22nd of November.

XTZ's exchange net flow

Source: Coinglass


Read Tezos’ [XTZ] Price Prediction 2024–2025


This suggested that whales and investors have been continuously transferring their tokens from wallets to exchanges, signaling potential selling pressure and reinforcing a bearish outlook.

Meanwhile, XTZ’s Open Interest (OI) has remained unchanged over the past 24 hours, suggesting 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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Vivaan Acharya is a Crypto-Economist and Journalist at AMBCrypto who brings a rare depth of financial and economic expertise to the world of digital assets. He holds a Master’s in Economics from the prestigious University of Delhi and has over five years of experience analyzing technology and financial markets. His foray into the blockchain space began in 2018, marked by his prescient Master's thesis, "Payments and Stablecoin Integration in Banking," which showcased his early understanding of crypto's potential to disrupt traditional finance. Before specializing in crypto, Vivaan honed his skills in rigorous data and technical chart analysis at a major national financial daily, where he covered corporate earnings and market trends. At AMBCrypto, Vivaan applies this powerful blend of classical economic training and seasoned financial journalism to his work. He is an expert in: 1. Bitcoin and Altcoin Market Analysis 2. Stablecoin Ecosystem Development, and 3 Emerging Crypto Regulations. Known for his clear, no-nonsense approach, Vivaan translates robust research into straightforward, actionable insights. He is dedicated to demystifying the complexities of blockchain finance, empowering readers to confidently navigate the rapidly evolving digital economy.
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