Tezos [XTZ] Crypto: Is a Correction on the Horizon? Key Data Suggests…

Tezos [XTZ] has recorded significant growth in recent days following an announcement from the staking platform Everstake in support of the token.

On the 24th of November, while many other alternative coins were facing challenges, XTZ saw a 24% increase.

Could the XTZ crypto price drop?

After a notable uptrend, the altcoin has now reached a point where it typically encounters selling pressure and price declines.

Nonetheless, the current market sentiment has shifted favorably, with a bullish overall market outlook, Everstake’s backing of the blockchain, and increased involvement from traders and investors.

At the time of writing, XTZ was trading close to $1.37 following a 4.5% price dip in the last 24 hours. Over the same period, its trading volume surged by 31%, indicating heightened participation from traders and investors.

According to CryptoCrypto’s analysis, XTZ was facing a robust resistance level at $1.50 and appeared to be encountering difficulties.

During its recent price surge, the altcoin successfully surpassed three resistance levels, with each breakthrough followed by some price consolidation before further advances.

Initially, during the beginning of the XTZ rally, it met resistance at $0.75. After consolidating for four days, it broke through this level. Upon reaching the subsequent resistance at $0.90, a two-day consolidation phase followed.

Previously, when the price touched the $1.13 resistance level, a consolidation period of nearly five days ensued.

As the price now approaches $1.50, the current day marks its introduction to this level, with expectations of a corrective phase before a potential major price upsurge.

Based on past price trends, breaking above the resistance level and closing a daily candle above $1.50 could lead to a significant 40% rally, reaching the $2.10 mark in the upcoming days.

However, the realization of this forecast may take time, considering that XTZ’s Relative Strength Index (RSI) stood at 74.5, indicating overbought conditions and hinting at a potential price correction or decline soon.

Negative on-chain indications

On-chain metrics also signal a pessimistic outlook for the asset. According to the on-chain analytics provider Coinglass, XTZ’s net flow on exchanges has consistently remained positive since November 22.

This pattern suggests that large holders and investors have been steadily moving their tokens from wallets to exchanges, implying possible selling pressure and reinforcing a bearish sentiment.

Moreover, XTZ’s Open Interest (OI) has remained stagnant over the last 24 hours, indicating that traders are potentially reluctant to initiate new positions or are awaiting price movements to trigger their stop-loss orders.